A consensus is emerging among the Cabinet over the policy Britain should adopt on euro membership, Tony Blair has said.

Speaking at his monthly press conference, the prime minister said senior ministers were engaged in "serious and detailed" discussions.

The FT reports that recent meetings between senior ministers have been robust but good humoured.

Trade secretary Patricia Hewitt and education secretary Charles Clarke are both reported as having frank exchanges with the prime minister and chancellor.

While Cabinet discussions continue, Blair said that he was prepared for "a big debate" on Britain's position in Europe.

He suggested that a "more profound" debate could shift public hostility towards the single currency and the emerging EU constitution.