Former treasurer Peter Costello has called on the Labor Party to cancel a television advertisement that suggests he does not trust Opposition Leader Tony Abbott to manage the economy.

The ad, which started airing last night, contains a clip in which the former treasurer says he would not endorse Mr Abbott on economic matters.

Mr Costello says the way the ad has been edited is deceptive and he believes Mr Abbott is a good economic manager.

He says Prime Minister Julia Gillard must intervene and have the ad dropped.

"Well it is very deceptive, it's deceptive and it's been cut, and if Julia Gillard had half an ounce of decency she'd get it off the air," he said.

"Let me make it clear. The person in this election who I endorse on economic management is Tony Abbott."

Mr Costello says the advertisement suggests Labor is "in trouble".

"The fact Labor has gone negative, so brutally negative, deceptively negative, in its advertising campaign means they're in trouble," he said.

"You're just going to see, I think, a wave of negative advertising between now and election day."

Ms Gillard has indicated she will not pull the advertisement.

She says it was an accurate quote from Mr Costello.