Senior Labour figures are said to be supporting secret plans to make peace with Ken Livingstone.

A proposed deal between the party and London's mayor would mean Nicky Gavron, who was selected as Labour's candidate last year, pulling out of the contest in return for a guarantee that she would resume her role as deputy mayor.

Although Livingstone was given a five-year ban from Labour membership after deciding to stand against Frank Dobson in 2000, he has repeatedly said he would like to rejoin the party.

One senior MP said last night: "Nicky will have to face reality and in the end I think she will do what is necessary. There is a head of steam building up on this inside the party and even inside Downing Street."