The Telegraph reports today that a deal has been struck between prime minister Tony Blair and other European leaders for him to become president of the EU commission when Romano Prodi stands down in 2005.

The condition is that Blair would have to take Britain into the single currency before then, requiring a referendum as early as next year.

It would also mean that he would have to give up number 10, clearing the way for chancellor Gordon Brown to make a bid for leadership of the Labour Party.