I hope to have the opportunity of working under Mr Heath's leadership to defeat the present government as soon as possible Reginald Maudling

Under Conservative Party leadership election rules Mr Maudling could have forced a second ballot but in view of Mr Heath's majority he bowed to tradition and announced his withdrawal.

In a statement issued late this evening Mr Maudling said: "I am very grateful to all the friends who have supported me but I have no doubt that it is in the interest of the party I should not continue to another ballot.

"I hope to have the opportunity of working under Mr Heath's leadership to defeat the present government as soon as possible."

Many are attributing Edward Heath's success to Mr Maudling's poor performance as Chancellor in the last Conservative government.

Mr Heath formally takes over as leader in a week's time when he makes the traditional address to a meeting of Conservative peers, Young Conservatives, the party's national executive and constituency delegates.

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