A bill bringing in a potential ban on fox hunting could be put before MPs by Christmas.

Home Office sources also say the government has dropped the idea of local referendums on hunting, preferring instead a nationwide law on the issue.

It is expected the bill will give MPs three simple options to vote on, ranging from keeping the status quo to an outright ban.

Progress on the bill is expected soon after the Queens speech on 6 December.

Home Office sources point to Lord Burns recommendation that there should not be different laws operating in different parts of the country.

It is understood there was little support for the idea of local referendums among either pro or anti-hunting groups who have been involved in consultations with the home secretary.

Ministers 'neutral'

Home Secretary Jack Straw has insisted that the government remains "neutral on the merits on whether hunting with hounds should be banned".

MPs will be allowed a free vote on the issue. Most are expected to support a complete ban, although such a move could still be stopped by the Lords.

A greater proportion of peers are sympathetic to the pro-hunting lobby.

The Burns inquiry, published last June, examined the case for banning hunting. It found that between 6,000 and 8,000 jobs depended on hunting.

It also revealed that up to 400,000 foxes are killed each year.

Options

If a complete ban is agreed, penalties for breaking it would be stiff, according to the Daily Telegraph.

The paper reports that it has a leaked copy of the bill which suggests that anyone found guilty of allowing dogs to hunt wild animals would face fines of up to �5,000.

Police would also be given the power to confiscate equipment and impound or destroy dogs.

Middle Way

MPs who want to see hunting regulated, the Middle Way group, say there is no proof that banning hunting would benefit the victim species.

They propose the creation of an independent hunting authority to draw up a code of conduct for the sport.

The another option would be to allow the sport to regulate itself, as is the case now.

A bill banning hunting in Scotland is currently going through the Scottish Parliament.