Duncan Smith continues to bat away talk of plots
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A second top Tory donor has called for a leadership contest despite Iain Duncan Smith vowing to lead the party into the next election.
Millionaire businessman John Madejski, chairman of Reading Football Club, said a leadership vote would "clear the air" after recent rumours of plots.
The latest bout of intense speculation about Mr Duncan Smith's leadership was sparked when £5m donor Stuart Wheeler said there was an overwhelming case for replacing him.
Friday's edition of the Times newspaper reports that former Chancellor Ken Clarke is ready to run for the leadership for a third time.
But friends of Mr Clarke have told BBC News they are sceptical about the story.
Many commentators have suggested his pro-European views mean he would not win enough support from backbenchers and grass roots Tories.
And shadow cabinet minister David Willetts told BBC Two's Newsnight: "This is just speculation about speculation."
On Thursday, Mr Duncan Smith laughed off rumours of plots during a visit to the East Midlands.
'Resolution time'
Since 2001, Mr Madejski has given £82,300 to the Conservatives.
He told BBC 2's Newsnight it was up to MPs to decide whether Mr Duncan Smith to lead them into the next election.
But he said: "It would clear the air very well at the moment, which it needs.
Madejski says Britain must have a credible opposition
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"I think there's so much going on now that to get the situation
resolved one way or another there should be an election just to confirm either
Iain Duncan Smith is going to carry on as leader of the Tory party or someone
new will be coming along to take over.
"But as far as I'm concerned as a would-be donor of the Tory party I think
it's very important we have a democratic process in this country, and that any
government has a credible opposition."
'Clear choice'
The comments are a blow to Mr Duncan Smith's attempts to put the focus on his policies.
But a party spokesman said: "People calling for a vote are forgetting that Iain Duncan Smith was
elected by the membership two years ago to fight the next general election.
"The choice is clear. We fight the next election united under Iain Duncan Smith and win or fight it divided and lose."
The spokesman also stressed that the party's treasurer this week said the finances were in "good order".
Mr Duncan Smith was dogged by questions about his leadership earlier on Thursday.
He said: "There is no question about my leadership there is only a question about who will be leading this country after the next election."
He added: "It will be me."
'Muttering'
Ahead of his comments, senior Tories were attempting to shore-up their leader's position.
Party chief whip David Maclean has denied as "fantasy" reports he told Mr Duncan Smith he had lost the confidence of MPs.
Deputy Tory leader Michael Ancram told BBC Radio 4's Today programme there was some "muttering" going on but most of his colleagues wanted to focus on confronting Labour.
"I spend a lot of my time going around the country talking to Conservative members and I get a very strong and clear message from them," he said.
"They are fed up with what they see as infighting at Westminster. They want to see us getting on with the job of winning the next election."
Letters
In Thursday's edition of the Telegraph former Tory leader William Hague wrote that it was "bizarre and frustrating" that just as Labour appeared divided some were saying "Let's have a mutiny, the battle can wait".
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"There is no question about my leadership"
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He went on: "The truth is the battle can't wait... It is time to let the salvoes roar with all guns pointed at the enemy."
There has been speculation for weeks about a leadership challenge to Mr Duncan Smith - which would be sparked by 25 Tory MPs writing letters calling for a vote.
Former whip Derek Conway told Today he had spoken to at least three long-standing Duncan Smith supporters had told him something had to
their leader "has got to do something to bring this to a head, and maybe an election is the way to do it".
"These were not people who are his enemies, who don't believe he's up to the job or any of that, these are people who are absolutely committed to him."
The senior backbencher added that he believed Mr Duncan Smith would win a vote of confidence in him if one was called.