Peter Mandelson is due to take a job in Brussels

Iain Wright, a local councillor and chartered accountant, was nominated at a Hartlepool Constituency Labour Party meeting on Friday night.

He beat off two other hopefuls, Darlington councillor Lee Vasey and party agent Phil Graham.

The by-election, to be held in September or October, was prompted by Peter Mandelson's departure to Europe.

Mr Wright won 78% of the vote in the first ballot which secured his nomination.

Speaking after the result he said: "I have lived in Hartlepool all my life and I am very proud of our town and have seen it in its darkest years and now want to see it keep moving towards a brighter future.

"Living in Hartlepool I can see our strengths and our problems, we have strong communities here and we are all working to make life better.

"Hartlepool can have a great future with Labour and I will be working hard to make it happen."

Labour is defending a 15,000 majority in the seat but recent by-election results at Birmingham Hodge Hill and Leicester South suggest it could have a fight on its hands to retain Hartlepool.

The Liberal Democrats announced last week that barrister Jody Dunn would be standing for the party, while the Tories are in the process of selecting a candidate.

Former television presenter and Euro MP Robert Kilroy-Silk has said he is "seriously considering" standing as a candidate for the UK Independence Party.

The Labour Party reportedly considered Middlesbrough Mayor Ray Mallon as a candidate for the seat.

But Mr Mallon said he would not be seeking any nominations because of his mayoral commitments.