Tony Blair marked his tenth anniversary as Prime Minister today by confirming that he is within days of setting a timetable for his departure.
The Labour leader told GMTV that he would make a definitive statement on his position next week, after the elections to the Scottish Parliament, Welsh Assembly and English councils.
"I will make my position clear next week. I will say something definitive then," said Mr Blair.
Political analysts have highlighted June 30 as the most likely day for the transfer of power to his successor - almost certainly Gordon Brown, the Chancellor.
Today Mr Blair heaped praise on Mr Brown, saying that he would make a great prime minister. "I have always said about him that he would make a great prime minister and I believe that," he said.
The warm words suggest that Mr Blair is finally likely to endorse Mr Brown next week, ending a decade of friction between the two most powerful men in British politics.
Such a move would finally make a reality of the fabled - and possibly apocryphal - Granita pact, in which Blair and Brown are rumoured to have carved up the leadership between them, with Blair allegedly promising to stand aside in Brown's favour at some point.
Since David Miliband, the Environment Secretary, ruled himself out of standing against Mr Brown, no senior Cabinet minister has been expected to challenge the Chancellor for the Premiership, although John Reid, the Home Secretary, has refused to rule himself out categorically.
There is likely to be at least one rival candidate from the left of the party. Michael Meacher, the former Environment Secretary, and John McDonnell, a left-winger, have both declared themselves interested in standing, and are said to be debating amalgamating their supporters behind one candidate.
Charles Clarke, the former Home Secretary, is also alleged still to be considering standing.
John Prescott, the Deputy Prime Minister, has indicated that he too will hand in his notice on the day that Mr Blair says he is quitting - possibly as early as next Tuesday, May 9.
Their twin resignations will set the clock ticking on an eight week interregnum period for rival candidates for both the leadership and the deputy leadership to campaign.
The day after Mr Blair quits, unions and other party affiliates will be given an update on the process.
Nominations will open the following day, when a communications pack will be sent out enclosing nomination forms and other information. Nominations will close on day six or seven.
Hustings - where the candidates travel Britain speaking to meetings of Labour members - will start in the second week, and continue for three weeks.
In week five the ballot papers will be sent out. Voting will be held in week six, and the ballot will close in the seventh week, so that the votes can be collected and counted.
On the 48th day - eight weeks after Mr Blair announces his resignation - a Labour electoral college will meet, probably in London, to finalise his replacement as party leader.
Saturday, June 30, is seen as the most likely date, as travel will be easier for the hundreds of delegates to the electoral college. These include all the party's MP and MEPs, and representatives from constituency Labour parties, the unions and other affiliated organisations. Sunday, July 1, is also possible.
Today Mr Blair addressed staff at the Labour party HQ, spelling out the challenges for his successor to win a fourth term in power.
"We can look back on this period with tremendous pride. However I did say never be complacent, and we shouldn't be," he said.
"There are new challenges to take on. Ours won't be the leadership that takes on those challenges."
Mr Blair offered some advice for his successor, saying that a party of government needed to hold its nerve. Being in power needed a "core of steel" to carry on through good times and bad, taking criticism and accepting responsibility, he said.
"We are looking now to how we can form a fourth term Labour government, but it's only if we can keep that psychological strength we will be able to do that," he said.
Mr Blair accepted that his decision to invade Iraq had been controversial, but remained defiant. "The foreign policy decisions can be very difficult, but I'm afraid I don't and never have regretted the part we played in removing dictatorships that were oppressing their own people."
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