Mayor wins total control of Tube firm Metronet

Tim O'Toole, London Underground managing director, confirmed today that Transport for London, the Mayor's authority, was the "only bidder" to take over. "We are now working with the Administrator to transfer the Metronet companies to TfL's control in early 2008."

TfL will be responsible for maintaining and upgrading the Circle, District, Metropolitan and Hammersmith and City lines, along with the Bakerloo, Central and Victoria deep level routes early next year.

The deal is a huge victory for Mr Livingstone who had long campaigned against the part-privatisation of the Tube, including two failed High Court challenges, and will provide a major boost for his Mayoral election campaign.

It is also embarrassing for Gordon Brown who, as Chancellor, was chief architect in hiving off large sections of the Tube to the private sector on 30-year leases against substantial opposition.

Two weeks ago it was revealed that Andrew Lezala, chief executive of Metronet, which went bust in July, was one of five to go in a top-level cull.

He will walk away with more than £500,000. Other former directors will receive huge severance payments.

Metronet, currently in administration and being run by TfL as " caretaker", recorded debts of £2billion after massive overspending on maintenance and improvement projects.

Financial details of the changeover were not released and have not yet been completed.

Metronet's two divisions, one controlling the sub-surface and the other the deep level lines, will be transferred to TfL on a "standalone" basis while a long-term structure is agreed between the Mayor and Government.