MPs and peers must decide on a menu of options for House of Lords reform, a joint parliamentary committee has said.

Former cabinet minister Jack Cunningham and the political veteran Lord Howe unveiled plans for the second stage of parliament's constitutional reform.

The MP and peer hailed "virtual unanimity" on the committee over the role and function of the Lords - particularly its subordinate relationship to the Commons.

But the committee found it more difficult to strike a deal on the future make-up of the second chamber.

Cunningham told journalists that MPs and peers started to get a "little grumpy" on the issue.

When it came to setting the reform options "fault lines opened strong and wide", he said.

Insisting that both Houses of Parliament should decide on the future of the Lords, Cunningham and Howe set out seven options for MPs and peers.

At one end of the spectrum a 100 per cent elected Lords is on offer.

Falling in between the status quo are 80, 60, 50 and 40 per cent elected options.

A one fifth elected and an 80 per cent appointed Lords are also included in the range of choices.

The possibility of keeping a fully appointed second chamber remains - although the basis for patronage is set to shift from party politics to an independent system.

The committee is urging leaders of both the Lords and the Commons to table motions drawn from the seven options on a free vote.

Debates and free votes on the proposals could be held as early as January, although senior figures in the Lords have tipped "next spring" as a likelier date.

Many MPs, however, believe that the majority of the second chamber should be elected and could, therefore, back six in 10 peers being elected.

Despite the consensus for change in the Commons, peers appear set to reject any substantial change and could back the status quo.

Cunningham said the joint committee could help negotiate between the two chambers in the event of a polarised parliament.

"If the committee is asked to reconvene to define the balance point we shall have to do our best," he said.

The Copeland MP acknowledged that pulling together final agreement between the Lords and Commons is "not easy".

"Members of the committee were prepared to compromise on some very controversial issues to allow parliament to decide," he stressed.

Following free votes in the Commons and the Lords - and any arbitration through the committee - ministers will then be charged with the task of putting a final proposal to both houses.

Insiders predict that the government is willing to compromise by putting forward a final plan which would see half of all peers elected - option seven in the joint committee's report.

"The exact half-way House may have some appeal on grounds of mathematical neatness. It would provide an apparently sufficient balance of electoral legitimacy on the one hand and of independence and expertise from appointment on the other," states the report.

Reports suggest that a blueprint could be ready by next autumn, including a retirement package to clear the way for new elected members.

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

Until then an "agreed moratorium" on new appointments to the peerage will stay in place.