Tony Blair wants to see things through in Iraq

Defence Secretary Geoff Hoon said Mr Blair was "absolutely determined to see this job through".

And Foreign Secretary Jack Straw said the PM was not going to "run away" because of speculation in the press.

Speculation had been fuelled by deputy PM John Prescott, who told the Times ministers were "positioning" themselves for when Mr Blair stepped down.

Mr Blair is thought to be under pressure from senior figures in his own party to distance himself from US President George W Bush, amid continuing difficulties in Iraq.

Labour backbenchers fear the party might get a hammering in next month's European and local elections.

According to the Independent on Sunday, Labour's own canvassing returns from around the country suggest the prime minister had become an "electoral liability".

Latest odds Blair to go - 13/8 Blair to lead Labour into election - 4/9 Labour to win election - 1/3 Tories to win - 9/4 Lib Dems to win - 50/1 Source: William Hill Odds cut on PM resigning

The paper quotes an opinion poll which suggests 46% of people believe Mr Blair should stand down before the next election.

Mr Blair has dismissed speculation he might be ready to hand over the reins to Chancellor Gordon Brown as "froth and bubble".

Mr Hoon told BBC One's Breakfast with Frost he "did not recognise" some of the stories in the newspapers about Mr Blair.

"Here is a man focused, engaged on the job, determined to sort out Iraq and allow Iraq to become part of the international community again," he said.

Oyster bar

Mr Straw told BBC Radio 4's The World This Weekend: "There are difficulties but people misunderstand our Prime Minister Tony Blair if they somehow think he is going to run away from his responsibilities because there is a lot of speculation in the newspapers."

Mr Straw, who according to some reports has forged an alliance with Mr Brown in recent weeks, said he was "certainly not" repositioning himself, adding: "I'm not going to either."

It would be wrong for Britain to attempt to distance itself from President Bush, Mr Straw added.

Scotland's Sunday Herald newspaper claims Deputy Prime Minister John Prescott met Mr Brown last week to discuss a "peaceful succession".

It claims the pair met for 90 minutes in the back of a ministerial Jaguar in the car park of the Loch Fyne Oyster Bar on Sunday afternoon.

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They reportedly spoke of brokering a deal between Mr Brown and other potential leadership challengers.

A spokesman for Mr Brown dismissed claims of a 90-minute meeting as "garbage".

But Conservative chairman Liam Fox said: "Britain now has a prime minister with weakened authority and a chancellor with heightened expectations.