Ken Livingstone is likely to stand as the Labour Party's candidate in next June's London mayoral elections.

Tony Blair, fearful of another heavy defeat in next year's vote, favours readmitting Livingstone to the party.

John Prescott and Gordon Brown are both firmly opposed to the move, believing that Livingstone's "disloyalty" should not be rewarded.

Nicky Gavron, the democratically elected Labour candidate, still believes she can win.

But one source told today's Guardian: "It can happen in a nice way or in a bloody way but it will happen.

"She can dig in on the basis that she was democratically selected and force the party to manoeuvre her out.

"But if she resolves to fight on and the party's worst fears are realised come next June's vote, many will never forgive her."