When a story involves a thick dollop of personal vanity, a pinch of political cunning, some misdirection of the press, a large portion of European power diplomacy and a teaspoon of humour, only one man can be its subject. For there is only one Peter Mandelson and, most of the time, that is quite enough.

The story that Lord Mandelson, of etc, is being considered as the European Union’s first high representative is a classic of the genre. Impossible to credit, impossible to discover quite where it came from, impossible to ignore. But come to think of it — Peter Mandelson as high representative? That is actually rather a good idea.

The outcome of the negotiations to fill the positions of president of the European Council and EU high representative is extremely uncertain. Yet the most popular combination seems to be the appointment of a centre-right president from a smaller EU country, and a centre-left high representative from one of the larger members. Support for this sort of pairing has simultaneously made the candidacy of Tony Blair more difficult, and made European leaders seriously interested in David Miliband as high representative.

The British Government has put all of its energy until now into advancing Mr Blair’s prospects. But while it can see now that the former Prime Minister’s chances are not negligible, they are slim. And Mr Miliband has made it clear that he is not a candidate. This leaves it open for the Government to put forward another person for one of these offices. Why not Lord Mandelson?

The high representative, with the enhanced role proposed by the Lisbon treaty, seems likely to be an important role. The occupant will promote European co-operation on foreign policy and, as a result, shape European consensus. While the choice of president should be guided by the assurances about the role given by the ratification process, European leaders are freer to choose the high representative.

For Britain it is vital that the post be filled by someone committed to the Atlantic alliance, robust in their support for free trade, and willing to advocate a muscular response when necessary. This political disposition needs to be discovered in someone who is wily, experienced and knows the way around European governments. It is hard to imagine anyone on the centre Left who fits this description better than Lord Mandelson.

Lord Mandelson may object that this idea is flattering but politically mischievous. He is needed here and is back in Britain “to stay”. To this there are three responses.

The first is that high representative is a serious job, and the British Government thought it so important that it broke a manifesto pledge to introduce it. If it was vital to have such a post, then it is vital to fill it with the right person. Lord Mandelson’s departure might be a sacrifice for Labour, but the party should surely be willing to make a sacrifice in the circumstances.

The second is that while Lord Mandelson might see it as a sacrifice for Labour, it is not clear that it is. His history with Gordon Brown means that he is honour-bound to protect him, when protecting him may not be helping anyone much.

And finally? Well, if this is all a bit of political mischief, it is delicious that it is a bit of political mischief he had a hand in starting himself.