Greg Dyke in Mayor offer

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He has been in secret talks with both the Tories and Liberal Democrats, senior sources in both parties revealed tonight.

David Cameron is offering not to field an official Conservative candidate against Mr Dyke if he runs as an independent.

This afternoon, Mr Cameron asked Liberal Democrat leader Sir Menzies Campbell to meet him to discuss an unprecedented possible deal where both parties would unite behind Mr Dyke.

The two leaders met after Prime Minister's Questions, but failed to reach an agreement.

Mr Dyke quit as director general of the corporation in 2004 after it was heavily criticised by the Hutton Report. He is said to be looking for a major new challenge.

One Tory said: "Can you imagine anyone else who could beat Ken? Greg would transform the whole contest and would be a really credible leader of the capital. Our prediction is that Londoners would rally behind him."

A Conservative spokesman said: "There have been discussions and he has expressed an interest in standing for Mayor. Nothing has yet been agreed."

A Lib-Dem source told the Standard: "A number of conversations have been taking place with Greg Dyke over a number of months and he is a declared supporter of the Liberal Democrats."

However, a spokesman for Sir Menzies said: "I cannot see we would have a joint candidate with the Conservatives."

Mr Cameron has suggested holding a special ballot of London party members to seek approval for endorsing a joint-candidacy.

When asked by the Standard today if he was planning to run as a mayoral candidate, Mr Dyke said: "No, absolutely not. Where did you get that from?"