Mr Mandelson twice resigned from Mr Blair's cabinet
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Downing Street has refused to confirm reports Peter Mandelson has been asked to be the UK's new EU Commissioner.
If it is true Tony Blair has picked his long-time ally for the Brussels job, the decision will trigger a by-election in Mr Mandelson's Hartlepool seat.
It would signal a remarkable comeback for Mr Mandelson, who has been both trade and Northern Ireland Secretary.
He has twice resigned from the Cabinet in the controversy over his home loan and in the Hinduja passports affair.
Enlargement
A Number 10 spokesman dismissed reports on Sky News and on ITN about Mr Mandelson's appointment saying he "didn't recognise" that position.
But if it is true, the appointment to the European Commission would come ahead of what could be a lengthy run-up to a referendum on the new European Constitution.
Britain's two current commissioners, ex-Labour leader Neil Kinnock and former Tory chairman Chris Patten, are stepping down.
EU enlargement means Britain will now have only one commissioner.
'Good names'
The new EU Commission President Jose Manuel Barroso appeared to suggest he wanted a list of possible names from Mr Blair.
Asked whether he would find the nomination of Mr Mandelson acceptable, he told BBC's Newsnight: "Of course the process of selection ... it is
the responsibility of the heads of government and the president of the Commission.
"So far I have not yet spoken to the prime minister of Great Britain about the Commissioner and I will not make any comment at this stage.
"I hope that the prime minister of Britain presents me with good names because I think it is very important for Europe to have the best in the European
Commission."