A former Euro MP who described Tony Blair as a "megalomaniac" is the most likely Labour candidate for the Ayr by-election.

The application from Alex Smith presents New Labour with a serious problem in its most marginal seat in the Scottish Parliament.

He represented the South of Scotland in the European Parliament for 10 years.

But Mr Smith, a well-known left winger, submitted an application to stand for the seat.

Slender majority

The by-election was called when the Labour MSP Ian Welsh, who beat the Tories by just 25 votes at the May election, resigned before Christmas.

When in Brussels, Mr Smith was well known for his old Labour views which saw him effectively deselected at the last Euro elections when he was placed fifth on Labour's list of candidates.

He subsequently withdrew his name.

Mr Smith caused embarrassment recently after describing the Prime Minister Tony Blair as a "megalomaniac with no substance".

The budding-candidate said he was putting his name forward after being approached by party members in Ayr.

The local constituency will make the final selection after a short list has been drawn up.

Tory candidate

Mr Smith's backers say that if he does not make it onto that list for the 25 March by-election it will cause a huge row and see votes being lost to Tommy Sheridan's Scottish Socialist Party.

The Scottish Conservatives became the first party to choose a candidate earlier this week.

John Scot, a farmer from Ballantrae, stood in Carrick, Cumnock and Doon Valley at the Scottish Parliament elections last May.