The plans being drawn up by Mr Straw hope to end discrimination and open up opportunity for black and Asian people in the UK.

Reports suggest measures may be unveiled after a report has been published on the racist murder of black teenager, Stephen Lawrence in April 1993 - expected in February.

Mr Lawrence's murder has highlighted problems in race relations in the UK after the 18-year-old was stabbed to death by a white gang near a bus stop in south east London.

Jack Straw, considering a reform of race laws

Criminal proceedings against five white youths later collapsed amid allegations of police prejudice, prompting the head of the Metropolitan Police, Sir Paul Condon, to make an unprecedented public apology for the failure of the investigation.

Proposals may include a "name and shame" initiative to encourage public bodies, like the National Health Service, to monitor the employment and promotion of employees from ethnic backgrounds.

But the government has ruled out positive discrimination and the setting of job quotas, but one option open to ministers would be to establish schemes where senior black staff act as mentors to their juniors.

One other possible option for reform would be the scrapping the "authenticity" rule which enables the exclusion of black actors from Shakespeare and period dramas set before the age of mass immigration.

The Commission for Racial Equality and the Equal Opportunity Commission are both keen for the reform of existing legislation.