JOHN PRESCOTT is considering staying on as deputy prime minister after Tony Blair leaves office, throwing plans for a smooth transition of power into disarray.

Prescott, who is also deputy party leader, is refusing to commit himself to leaving office at the same time as Blair. His aides told one prospective contender for his job: “Stop assuming he is going. He doesn’t want to.”

Supporters say he is keen to restore his reputation after controversies over his visit to the ranch of Philip Anschutz, the US owner of the Millennium Dome, and his affair with Tracey Temple, his diary secretary. They say he wants to leave office “on a high” after decades of work for Labour and believes he could justify hanging on to help smooth the handover from Blair to his successor.

Candidates vying for his job, however, say it would not only jeopardise the transition by prolonging in-fighting over his successor but would also burden the party with extra costs. It would force Labour to hold two separate elections at different times for leader and deputy leader which, according to insiders, could add £1m to the party’s £27m debts.

Asked this weekend about his plans to stay on, Prescott would only say: “This is a matter between me, the party and the national executive committee.”

A close ally, Richard Caborn, the sports minister, said that although it had been widely assumed that Prescott and Blair would resign together, “it is not a definite”. He added: “There are circumstances where that might not be the case; it might not be the right formula. It is impossible to say when John will make up his mind, but he will see what the mood is of the party at conference this week, and how people feel when parliament returns in October. He will make the decision in the best interests of the party.”

Insiders say Prescott has been forced to reconsider his retirement plans after it became clear that Blair would step down sooner than originally expected — probably next spring — sharply reducing the time left for Prescott to rehabilitate himself in the party.

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