Peter Mandelson, sacked twice as a minister by Tony Blair, has been appointed the new chairman of a group promoting closer relations between Japan and Britain.

The ex-Northern Ireland Secretary is to replace the Conservative Lord Howell as chairman of the UK-Japan 21st Century Group from September, it has been announced.

The group, formed in 1984, holds regular meetings which politicians, business figures and diplomats attend.

Mandelson's most recent downfall was caused by his involvement in the "passports for favours" scandal in which it was suggested the Hinduja brothers were given speedy approval for their passport applications in return for sponsoring part of the millennium dome.

However, the Hammond inquiry cleared him of any wrong-doing and he was re-elected as MP for Hartlepool at the general election.

Mandelson remains a close ally of the prime minister and his appointment was considered by Blair and the Japanese premier Junichiro Koizumi when the two leaders met in Downing Street at the beginning of July.