At least five senior Cabinet ministers are preparing to back the prime minister in his battle with Gordon Brown over the forthcoming assessment on British entry into the single currency.

According to the FT, the five, including Charles Clarke, Alan Milburn, Geoff Hoon and Patricia Hewitt, believe the conditions are right for entry and that the government should not postpone a referendum for too long.

Welsh secretary Peter Hain tells the FT that the pound has "adjusted into the kind of territory" on currency markets that make entry possible.

Brown is set to recommend postponing entry in the next few weeks, but sources close to the new alliance insist that the government position will be the result of Cabinet discussion.