Convicted fraudster Peter Foster has reportedly warned Tony and Cherie Blair of "bullets" still to come if he tells his side of his dealings with the prime minister's wife.

In a second day of alleged transcripts of phone conversations published in The Sun newspaper, Mr Foster warned that he may reveal new allegations which could harm Downing Street.

Mr Foster reportedly said he had plenty of "ammunition" against the people he believed were trying to smear him.

"Now the gloves are coming off, you know. I know a few secrets I wasn't going to tell. But if I'm forced to I will."

Hoping for deal

Later he says: "I've got a couple of bullets I can fire yet. We've done nothing wrong. They're the ones telling all the lies."

Mr Foster also, however, appeared to back Cherie Blair's denials that she tried to influence his deportation fight.

He told his mother Louise Pellotti in the taped conversations: "Cherie wasn't trying to influence the court or the judges."

Cherie Blair has denied any involvement in his deportation process

Mr Foster has said he would make a statement on Monday, giving his side of his dealings with Mrs Blair.

But in the transcripts he appeared to be hoping for a lucrative deal with a newspaper.

Mrs Pellotti, speaking from Dublin, reportedly asked him on Thursday: "Will the Daily Mail still pay?"

He replies: "I don't know. We'll wait and see what happens tomorrow. This story may not go away."

The Daily Mail has denied paying money to either Mr Foster or Carole Caplin, Mr Foster's girlfriend and Cherie Blair's "lifestyle guru".

The Sun has given no explanation as to how the transcripts were obtained.

Both the newspaper and Downing Street denied suggestions the government was involved.

Meanwhile, the Press Complaints Commission says it has written to Mrs Blair to see if she wants it to investigate elements of the coverage of the story.

Not commenting

Mr Blair, who has been attending a summit on EU enlargement, refused to comment on the story to reporters.

"I am going to carry on concentrating on the things that really matter," he said.

The story that Mr Foster had helped Mrs Blair to purchase two flats in Bristol first appeared almost two weeks ago in the Mail on Sunday.

Following claim and counter-claim, Mrs Blair eventually made an emotional statement admitting mistakes after civil servants in the No 10 press office initially denied that Mr Foster had been involved.

It was also later claimed Mrs Blair may have tried to interfere in immigration officers' attempts to have him removed from the country. Mrs Blair strongly denied that claim too.