However, while the research by the Confederation of British Industry found about 10% of companies opposed to the euro, only 19% believed the UK should join within the next two years.

Sir Clive Thompson, president of the CBI, said the organisation's policy was now a clear "yes" to Economic and Monetary Union (EMU) - but not an unconditional one.

The BBC's Ed Crooks: "The Euro still has friends"

The survey was based on responses from a total of 1,700 businesses, about one quarter of which were CBI members. It found that companies thought UK membership could bring significant economic benefits, but that progress was still needed to ensure the success of EMU.

Sir Clive said the results echoed previous surveys which gave qualified approval to the UK joining the euro.

Sir Clive Thompson: "A clear but conditional yes"

"A significant body of members would like the UK to commit to entry by 2005, while many would prefer a date to be fixed only when conditions for successful entry are in place.

"Others believe that we should wait and see without commitment to a specific date at this time."

Sir Clive added: "Our policy on timing is therefore not committed to a specific date, but the option of entry should be kept open from 2001 onwards."

Sample 'unrepresentative'

CBI deputy director-general Peter Agar: "We asked a clear question"

But the CBI has been attacked for being unrepresentative and out of touch.

The anti-euro pressure group Business for Sterling (BfS) said the CBI was the mouthpiece for only a tiny proportion of UK companies.

"The CBI has only 2,300 members out of 3.7 million businesses in the UK," said Nick Herbert, chief executive of BfS.

"They are dominated by pro-euro diehards and downsizing multinationals. They simply do not represent the views of most businesses on this issue."

The spat is the latest incident in a bitter war of words between business groups over the euro. It follows the CBI's rubbishing of a BfS poll in March in which 63% of the firms questioned wanted to keep the pound.

BfS Chief Executive Nick Herbert: CBI represents fewer than one in 1,000 businesses

The CBI director-general, Adair Turner, said that result was "skewed" as only 10% of the 1,000 companies surveyed were members of his organisation.

Prior to that BfS had attacked a previous CBI survey of 1,700 member firms which showed backing for the euro.

CBI consultation 'a charade'

CBI's Adair Turner: Not the voice of British business, his critics say

Mr Herbert dismissed the results of the latest CBI consultation even before they were published.

"The CBI has been wedded to Economic Monetary Union for years. They set out to reinforce their pro-euro position and no-one should be surprised that they achieved it.

"The whole process has been a charade," he said.

"Every other survey of business and public opinion is moving against the euro."

The Institute of Directorsalso questioned the findings, pointing out that only 30% of non-CBI members were in favour of joining within five years.

"This is a real thumbs down for an early referendum," said IoD director-general Tim Melville-Ross.

The CBI consulted 430 member companies and also commissioned a MORI poll of another 5,000 businesses - one quarter of them responded.