DOWNING STREET is poised to intervene in the row over homosexual clergy by appointing the first openly gay dean of a cathedral.

Jeffrey John, the gay priest forced to stand down as Bishop of Reading after an outcry, will be nominated for promotion by No 10 officials despite the prospect of inflaming traditionalists.

Church of England sources disclosed this weekend that William Chapman, the prime minister??s appointments secretary, is to recommend the appointment to Tony Blair after taking soundings from senior clergy.

The step will be seen as an attempt by No 10 to encourage the church to set aside its squabbling and appoint the best priests to key positions irrespective of their sexuality.

A senior church source consulted by Chapman said: ??William is convinced Jeffrey should not be left dangling in limbo. He was ready for a move earlier this year and the church should utilise his gifts now as a dean.??

John, an official at Southwark cathedral, was appointed Bishop of Reading in May but was forced to withdraw by traditionalists. Although openly gay and with a companion, he insisted that he was celibate, thus removing a possible obstacle to his appointment. Only sexually active gay priests are barred.

Chapman??s proposal to elevate him to the post of dean, usually the second highest official in a diocese, is likely to be backed by Blair.

Norwich cathedral has been identified by church sources as the ideal deanery for John under a process of appointment which is so secretive that fewer than half a dozen people are directly involved.

Unlike bishops, deans are appointed by the prime minister without reference to any church committee or commission, before the decision is ratified by the Queen.

The appointments secretary presents the prime minister with up to four names, allowing him or her the final choice. The diocesan bishop is shown the names but only in exceptional circumstances would argue for changes.

Other vacant deaneries include York and Salisbury. John??s name is known to have been discussed in relation to Salisbury but is not believed to have been put forward by Chapman. Downing Street declined to comment.

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