The health secretary suggested yesterday that he was ready to compromise with England's 40,000 consultants over contracts.

John Reid withdrew his earlier remarks, now saying that he could "shift" his position in talks on July 4 with consultants' leaders.

"We are very pleased that the government has finally agreed to meet the consultants," a senior BMA source said yesterday.

"We believe that the differences between us are not great and that this is a problem that can be resolved."