US hints at Blair Middle-East role

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The intervention came amid reports that US officials have been in London in the last 48 hours to hold talks over the appointment.

The Prime Minister's official spokesman declined to comment on Mr Blair's post-Downing Street plans. He steps down next Wednesday. But the White House indicated that an announcement could be imminent.

Spokeswoman Dana Perino said: "Obviously Prime Minister Blair has been very active and deeply involved in Middle East peace issues throughout his prime ministership."

She added that Mr Blair and the US President spoke often.

"It would not surprise me if they have talked about what Prime Minister Blair would like to do following the end of his term... but we don't have anything to announce today," Ms Perino said.

Earlier, the Al Jazeera news channel claimed that Mr Blair was set to be installed as envoy for the Middle East Quartet, comprising the US, United Nations, Russia and European Union.

The position has been vacant since former World Bank chief James Wolfensohn quit the post in April last year.

It would give Mr Blair a central role in future efforts to secure peace between Israel and the Palestinians. The Israeli Prime Minister Ehud Olmert suggested on Wednesday that No 10 was aware of the proposal.

Israeli government spokeswoman Miri Eisin said: "Officials in the prime minister's office are aware of this idea and Prime Minister Olmert is very supportive of Prime Minister Blair and of his continuing involvement in the Middle East and the peace process."