Barry Legg, the chief executive and chief of staff of the Conservative Party, has demanded a pay-off of at least £160,000 if he is asked to leave by the party board next week.

His written demand for the payment of two years' salary if he is forced to quit was sent to Sir Stanley Kalms, the party's treasurer, as he was faced with criticism from Conservative MPs over his past involvement in Westminster council.

Pressure is mounting on Iain Duncan Smith to resolve the issue before an away-day of Tory MPs later this week.

Conservative MP Derek Conway yesterday called on Duncan Smith to sack Legg.