Half the House of Lords could be elected in a compromise reform deal, according to press reports on Monday.

A joint committee of MPs and peers is putting the finishing touches to five reform options for parliament's second chamber.

Tony Blair is set to give both the Commons and Lords a free vote before Christmas, it has been claimed.

Sources close to the joint committee on Lords reform - chaired by Labour MP Jack Cunningham - believe a reform blueprint will be ready by next autumn, including a retirement package to clear the way for new elected members.

The five options are: 100 per cent elected; 80 per cent elected; 60 per cent elected; 20 per cent elected (the government's white paper preference) and a completely appointed chamber.

The 60 per cent elected composition of a reformed Lords - already suggested by the Commons public administration select committee - is expected to be backed by MPs, the Lords will support a much lower option, perhaps even the status quo.

The joint committee will then draw up a compromise deal which many think will be a 50 per cent elected second chamber.

A package of reform would then be ready for legislation in the 2003/2004 session - allowing elected members into the Lords for the next general election.

To make room for the new parliamentarians, elderly life peers may be forced to retire from active service in the upper house.