UPDATE 1-Deutsche Bank nominates Chairman Achleitner for five more years

(Adds supervisory board nomination details)

FRANKFURT, March 16 (Reuters) - Deutsche Bank Chairman Paul Achleitner has been nominated for another five-year term on the lender’s supervisory board, a controversial choice for Germany’s flagship lender which is struggling with yet another strategy overhaul.

Achleitner’s potential nomination has been discussed for months and has split investors, with critics saying he did too little to change the bank’s culture and strategy while advocates say his departure would cause more uncertainty.

“Should his nomination be approved at the Annual General Meeting, the intention is for Achleitner to be re-elected as chairman,” Deutsche Bank said in a statement on Thursday.

During Achleitner’s tenure, the bank’s stock price plunged, weighed down by a string of legal issues and fines.

This month, Chief Executive John Cryan sought shareholder backing for an 8 billion euros ($8.5 billion) rights issue, the fourth capital increase since 2010, to pay for an overhaul of its investment bank and retail banking operations.

Deutsche also said it would seek backing at the Annual General Meeting on May 18 to elect two new members to the Supervisory Board.

Gerhard Eschelbeck, head of IT security at U.S. technology group Google, is to succeed Peter Loescher while Alexander Schuetz is to replace Klaus Ruediger Truetzschler, the bank said.

Schuetz is the founder and Chief Executive of C-Quadrat, which manages Chinese conglomerate HNA Group’s stake in Deutsche Bank, the lender said.

Sources told Reuters this month that HNA Group would like to increase its 3 percent stake in Deutsche Bank.

Deutsche Bank also said Norbert Winkeljohann would stand for election at the 2018 Annual General Meeting. Winkeljohann is chairman of the management board of advisory and accounting firm PricewaterhouseCoopers in Germany, and will replace Henning Kagermann, who will not stand for re-election, Deutsche said. (Reporting by Edward Taylor; editing by Susan Thomas)