Britain's deputy prime minister hinted yesterday that Tony Blair may "very shortly" step down as prime minister and leader of the Labour Party, triggering a party election to replace him.

John Prescott's comment during an interview with BBC is likely to add fuel to the burning political question - 'when will Blair move aside?'.

"I can still make an important contribution when the party has its means by which it makes decisions about that (the choosing of a new leader) and I think that will come very shortly," Prescott said.

"I think it will be a smooth transition .... therefore there will be a timetable that will be decided by Tony and the party," he said.

The deputy premier said he expected to play a role during any transition phase which he added ought to include a contest.

Al-though Blair has said he will stand down as prime minister and Labour leader before the next election he has refused to name a date at which he intends to relinquish the reins of power.

Chancellor Gordon Brown is widely tipped to replace Blair although there have been signs from senior Labour politicians over recent months that he may not have a totally clear run for the position. Prescott also defended his position following a number of scandals surrounding him.

On Friday Blair resisted calls to investigate Prescott over a row surrounding the deputy prime minister's links with a US tycoon who wants to open a casino in London.

Parliamentary ethics watchdog Philip Mawer said Prescott may have broken a more restrictive ethics code for cabinet ministers, which only Blair has the power to enforce.

PHOTO CAPTION