John Reid delivered a political bombshell today with the announcement that he would resign as Home Secretary and leave the Cabinet after Labour's forthcoming leadership election.

But Mr Reid, seen by many as the only Cabinet heavyweight able to mount a credible challenge to Gordon Brown, ruled himself out of a leadership bid, saying that he would throw his weight behind the Chancellor to replace Tony Blair.

The arch-Blairite minister, who has held nine ministerial jobs in the last decade and seven Cabinet-level posts in the past eight years, told BBC One's The Politics Show that there was "no eagerness" in the party for a leadership contest.

"Therefore, I have decided I will not put myself forward as a candidate," he said.

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Reid's decision not to stand is not a surprise, but his decision to leave the Cabinet has come as a shock

Philip Webster, Political Editor, The Times

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Mr Reid added that he wanted to give Mr Brown the opportunity to bring new people into his leadership team. "I intend to vote for and support Gordon Brown, to put through the changes to the Home Office, then to stand down - as Tony Blair goes - from the Cabinet and to give maximum opportunity to Gordon to bring in new people," he said.

It is widely expected at Westminster that the Prime Minister will lay out his resignation timetable next Thursday. Mr Reid said his intention was to stand down from the Cabinet "towards the end of June".

The Home Secretary said that he had discussed the move with the Chancellor, who had assured him there would have been a place for him in a Brown government.

But Mr Reid, who turns 60 on Tuesday, said that he had decided he would serve Labour best by quitting the Government and supporting Mr Brown from the backbenches in the years ahead. He also wants to spend more time with his family and watching football.

"In my view it is better for the Labour Party, the leadership and the new prime minister that he be given the maximum flexibility," Mr Reid said.

"In terms of introducing his new ideas, new agenda - same direction but new policies perhaps in pursuit of that, certainly new people - a fresh start bringing in younger people in many cases.

"From my point of view, it is better to take the chance, having had nine jobs in 10 years, to recharge my batteries."

Mr Reid suggested that he was not jumping before being pushed and said he would not be portrayed as a divisive figure. "He’s made plain to me there is a position in his government for me, but he understands and he accepts my decision on this," he said. "I have made plain to him I will be there to support him."

Mr Reid also said it was not for him to give advice to the Chancellor on his style. "He’s the pre-eminent politician of Labour, he’s got a record that is hugely enviable in terms of delivering a better standard of living, the economy of this country and so on," he said.

"I know Gordon Brown’s talents as well as anybody - I’m probably his oldest political acquaintance. Despite everything you read in the Press, we regard each other as friends, we are certainly colleagues and I will be absolutely supportive because I know his immense strengths.

"One of those strengths is his sincerity, his conviction and his absolute conviction to public service and to serving the public as leader of this country as Prime Minister."

In a letter to the Prime Minister, Mr Reid said that now the elections were over and Mr Blair had indicated he was leaving, it was time to clarify his own position.

In a letter of reply, Mr Blair said he respected the Home Secretary’s decision but said it would be "a great loss to both country and party".

"You have been an immense figure in the Government over this past decade, fulfilling a number of crucial positions at vital moments, with distinction," Mr Blair wrote.

"Your political courage, your ability to analyse and get to the heart of an issue and your understanding of people, their concerns and their hopes, has been outstanding.

"Especially at critical moments in Northern Ireland, during the essential stages of reform in the NHS and most recently in the Home Office where you gave leadership and direction in one of the most challenging jobs in Government, you have a record to be proud of."

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