The chancellor's pre Budget report may bring extra cash to Wales

Opposition parties in Cardiff Bay had said they would vote down Labour's �14bn spending plans unless �22m more was found for schools and universities.

But Tories suggested on Wednesday they would back the budget if enough of the Treasury's �9m went on education.

It is understood no new talks have yet been held to resolve the spending row.

The extra cash came as part of Mr Brown's 10th pre-Budget report.

He announced an extra �165m for Wales over the next four years including �9m next year.

Conservative assembly leader Nick Bourne said it was now up to the first minister to show what his priorities were.

Mr Bourne said: "Rhodri Morgan must now decide whether he believes in investing in education or is prepared to reap the consequences if he does not."

The comment is a clear indication that the Conservatives would back the budget if enough of the �9m were to go to education.

Welsh Finance Minister Sue Essex had said previously she would be happy to talk to opposition AMs if there was extra cash.

Opposition parties hold a slim majority in the Welsh assembly and had threatened to form a coalition government unless the Labour administration met their demands for the additional funds for education.

The assembly budget plans go to the vote on Wednesday 13 December and Labour has said defeat on the budget vote would leave public services in limbo.