Plans for the National College of School Leadership were revealed as he addressed 500 newly appointed heads at a London conference.

BBC Education Correspondent Mike Baker

Due to be established by the year 2000, it will deliver courses leading to the National Professional Qualification for Headship.

More than 4,000 teachers who want to become heads in England and Wales are currently undergoing training towards the qualification, which will eventually be a compulsory requirement for all applicants for headteacher posts.

The college, which will also provide in-service training for existing head teachers, will receive �10m towards its start-up costs from the government. Ministers hope its development can be funded through a public-private partnership.

Tony Blair: "Headteachers who turn their schools round deserve better recognition and better salaries"

Mr Blair said the establishment of the college would form a part of the reforms of the teaching profession to be announced in a consultation paper next month.

"Our best heads are superb, but we need more of them, and we need to give greater support to all those facing the challenge of leadership as they develop their leadership and management skills," he said.

"Top business invests heavily in training their high-flyers and senior managers. So do the army, the police and other parts of the public sector.

"But when it comes to headteachers, whose jobs are at least as demanding, we do far less.

"It's like saying to the managing director of a big company, here's your 1,000 staff - now go out and manage them and get the best out of them - but we're not going to give you much help.

David Willetts: "An initiative too far"

"No company worth anything would do that, and nor should the world of education."

The conference also heard from the Education Secretary, David Blunkett, that �25m would be spent on training headteachers during the next financial year.

But the Shadow Education Secretary, David Willetts, has criticised the planned college.

"There are already three initiatives in this area - the National Professional Qualification for Headship, the Headlamp scheme for new heads and the Leadership Programme for serving headteachers," he said.

"There is growing evidence that teachers are now so overburdened with government initiatives that they are not able to find time to take advantage of the options which exist."

Headteachers' unions are broadly supporting the proposed college.

Other speakers at the conference included American management guru Ben Zander, the conductor of the Boston Philharmonic Orchestra who uses music as a motivational tool and who got heads to sing along with him during his two-hour slot at the conference.