Peter Mandelson is considering an extraordinary offer from Gordon Brown to reconsider his decision to quit as Britain’s EU commissioner.

Mr Mandelson’s second chance comes a year after he abruptly announced that he would not seek a second term - so as not to allow the new Prime Minister the satisfaction of rejecting him. Since then the two have undergone something of a rapprochement after their long feud. They barely spoke for a decade after Mr Mandelson backed Tony Blair to become Labour leader in 1994.

According to well-placed sources, the Prime Minister extended his olive branch last month when they met in Brussels for private talks that lasted more than an hour. Mr Brown is understood to have asked Mr Mandelson whether he was still interested in a second term in Brussels.

Although Mr Mandelson had been thought to be planning a career in industry after his term expires in 18 months, a spokesman for Mr Mandelson said yesterday: “He has not reached a definitive view. That is something for next year.”

Last March, with Mr Brown poised to take over at No 10, Mr Mandelson advised his old enemy through a BBC interview that he was unsackable. He told Radio 4: “I don’t know whether this is going to come as a disappointment to him, but he can’t actually fire me. So like it or not, I’m afraid he will have to accept me as commissioner until November 2009. But I will not be seeking a nomination for a further term.”

Mr Mandelson, who became Trade Commissioner in 2004 after twice being forced to leave the Cabinet, is thought to have explained his BBC announcement by saying that he felt bounced into it by reports that Mr Brown had already made up his mind to block him. Those close to Mr Mandelson still expect him to leave the Commission next year.

A Downing Street spokesman said that he would not comment on the Prime Minister’s private conversation with Mr Mandelson.

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