Mr Price says Mr Blair is determined to do the best for his country
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Downing Street has refused to comment on a series of claims contained in the diaries of the prime minister's former deputy media advisor.
Lance Price's book, Diary of a Spin Doctor, details alleged incidents of bullying by officials and tensions between senior ministers.
Mr Price was forced to change one section of the book which said Mr Blair "relished" sending troops into Iraq.
Number 10 said the matter was being dealt with by the Cabinet Office.
Mr Price was an advisor to Mr Blair until soon after the 2001 general election.
'First blooding'
He was allegedly asked by Cabinet Secretary Sir Gus O'Donnell to amend an entry in his book, which claimed Mr Blair "relished" sending armed forces into action in Iraq.
However, the Mail on Sunday newspaper, which is serialising the book, has obtained the original version.
It was written when Mr Blair ordered RAF pilots on joint US-UK bombing raids over Iraq at Christmas 1998, the first time he authorised military action.
"I couldn't help feeling TB was rather relishing his first blooding as PM, sending the boys into action," the Mail on Sunday's version says.
"Despite all the necessary stuff about taking action 'with a heavy heart' I think he feels it is part of his coming of age as a leader."
The book says the prime minister "feared" Ken Clarke becoming Conservative leader, and was reluctant to scrap 11pm pub closing.
Making sure the premier did not have to interrupt his holiday for the Omagh bombing memorial service was a "priority" following the 1998 attack which claimed the lives of 28 people, Mr Price said.
According to the book, telling the truth was "not an option" when ex-Welsh Secretary Ron Davies was caught in a "moment of madness" on Clapham Common.
Relations between Gordon Brown and ex-trade secretary Peter Mandelson were in a state of "almost open warfare" and those between the chancellor and Mr Blair were "difficult".
Disappointment
Mr Price, who stepped down after the 2001 election and now runs a hotel in France, says he has not betrayed the prime minister who he claims "is absolutely determined to do the best for his country and party".
However, the Mail on Sunday obtained a letter from Cabinet Secretary Sir Gus O'Donnell accusing him of "betrayal" for refusing to be gagged.
Asked by reporters why Sir Gus had asked for passages in Mr Price's book to be changed, the prime minister's official spokesman said: "These matters are dealt with by the Cabinet Office, so I will leave it to the Cabinet Office."
He added: "The Cabinet Secretary fulfilled his official function."
Asked whether Mr Blair was pleased about the book, the spokesman said: "The prime minister, like me, does not do book reviews."
John Hutton, Chancellor of the Duchy of Lancaster, called the publication of the book "fairly disappointing".
"I just think it is not particularly helpful to have all of this sort of tittle-tattle and stuff around, particularly in newspapers which might not always want to help the government," he told GMTV's Sunday programme.