LABOUR officials have denied suggestions that Downing Street is mounting a behind-the-scenes campaign to install a senior advisor to Tony Blair in a North-East seat.

Some Labour loyalists have reported unease that the way is being paved for Liz Lloyd, one of the Prime Minister's closest advisors at Number 10, to become the party's candidate for the seat vacated by the retirement of Derek Foster, MP for Bishop Auckland, County Durham.

It is understood that Ms Lloyd is one of at least 11 women to have declared an interest in the safe Labour seat.

The Northern Echo can also reveal that, only last week, Ms Lloyd joined the trade union Amicus.

Several North-East candidates have already announced they will stand for selection on the all-woman shortlist: Teesside-born opera singer Suzannah Clarke; former European Parliamentary candidate Joanne Thompson, from Ponteland, in Northumberland; Darlington councillor Lee Vasey; fellow Darlington councillor Cyndi Hughes, the wife of North-East MEP Stephen Hughes; Gateshead councillor Denise Robson; and early front-runner Mo O'Toole, who lost her seat on the European Parliament in June and was once married to Darlington MP Alan Milburn.

One senior Labour insider told The Northern Echo: "Number 10 is desperate to parachute in Liz Lloyd, and block local candidates"

Ms Lloyd has been a member of Mr Blair's innermost circle since 1994, when the MP for Sedgefield became Labour leader. The Cambridge graduate works in the Number 10 policy unit as an advisor on Africa, having previously worked in home affairs.

But Bishop Auckland Constituency chairman Peter Moore said he was unaware of any attempt to parachute a candidate into the seat.

He said: "It is going to be for whoever is on the shortlist to put their case, and the final decision will be made by party members."

Nominations for the seat close at lunchtime today.