Sir Alan Sugar will be ennobled later this month after being approved by an independent watchdog, The Times has learnt. Gordon Brown is due to announce the peerage within days despite reports that the entrepreneur’s elevation to the House of Lords was being blocked.

The award of a Government job as an “enterprise champion” to the star of the BBC television series The Apprentice was one of the most controversial elements of last month’s reshuffle.

Ministers admitted that Sir Alan did not need a peerage to carry out the role which was limited further after the Conservatives raised objections that it breached BBC impartiality rules.

Speculation that it could be blocked increased after the House of Lords Appointments Commission — the body which vets nominations — raised concerns about another appointment.

Mr Brown pressed ahead with a peerage for Michael Martin, the former Commons Speaker, despite the watchdog warning it could damage the reputation of the Upper House.

It seemed likely that the Prime Minister would have to defy the body a second time when it was reported it was urging Sir Alan’s peerage be delayed until a sex discrimination case against him is resolved.

The Conservatives also lodged a formal complaint with the BBC Trust after the corporation decided that Sir Alan could remain with The Apprentice.

However, the committee raised no concerns about the propriety of the appointment. The entrepreneur will be ennobled on July 20. Whitehall officials say Sir Alan has already started work on a number of projects including how to protect small businesses during the downturn.

Under the terms of his agreement with the BBC, Sir Alan is unable to brief the Cabinet and will not have his own office in the Department for Business Innovation and Skills.

Sir Alan’s new job will not be his first job in Whitehall, according to notes published ahead of his appearance at a Civil Service conference. The entrepreneur “worked briefly as a statistician at the Ministry of Education and Science” after leaving school at the age of 16, says Civil Service Live 2009.

The employment tribunal, brought by Hanna Sebright, an executive at a company taken over by Sir Alan last year, will not be heard until the autumn. In a statement, Sir Alan's spokesman has said that the businessman would "vigorously defend" himself.

He added: "Sir Alan is surprised that it was thought appropriate to join him personally to these proceedings in circumstances where he has only met the individual concerned on one occasion for no more than 10 minutes."

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