The daily claims that Schwarz-Schilling decided to stay in the country so that he could take part in talks on constitutional reforms.
He has informed his closest associates and some influential ambassadors of his decision, the daily says, adding that many among foreign ambassadors in Bosnia do not want that kind of involvement of the German politician.
Dnevni Avaz quoted anonymous sources as saying that Schwarz-Schilling wants to help in the work of a special commission for constitutional reform, to be established as a parliamentary or government body.
Schwarz-Schilling proposed establishing such a commission some ten days ago, when he offered leaders of political parties in the country to sign a statement containing the obligation to establish such a commission, as well as a provision stating that the reform of the country's constitution would have to be finished by the end of 2009.
Schwarz-Schilling intends to finance his continued stay in the country on his own.
Most of the local media and public, with the exception of those from the Serb entity, have negatively assessed Schwarz-Schilling's work in the last year and a half.
The media in Sarajevo have accused him of "having overslept most of his term" and of failing to use his extensive powers in almost any major case.
Bosnian Serb politicians like Milorad Dodik have commended Schwarz- Schilling exactly for that reason, expressing hope that his successor Miroslav Lajcak would act in a similar way.
If he stays in the country after July 2, Schwarz-Schilling will set a precedent because nobody has invited him to continue with active political engagement in Bosnia.
There was an unwritten rule for previous High Representatives, as well as for foreign ambassadors, not to visit Bosnia and Herzegovina or make public comments on the situation in the country for some time after the expiry of their term.