MICHAEL HOWARD last night looked set to be crowned Tory leader following Iain Duncan Smith's defeat in a vote of confidence.

A succession of would-be contenders stepped down in Mr Howard's favour within hours of the result of the ballot of MPs being announced.

They were led by shadow deputy prime minister David Davis, who said: "For the sake of the country and the Conservative Party I have decided to stand aside from this contest in favour of Michael Howard, who I believe will be well placed to unify the party and win the next election."

But Mr Howard, 62, is not expected to publicly confirm his intention to stand until this afternoon, and nominations do not officially close until noon next Thursday - leaving plenty of time for the "dream team" scenario of Mr Howard backed by Mr Davis to fall apart.

The day of drama at Westminster came to a climax at 6.59pm when chairman of the Conservative backbench 1922 Committee Sir Michael Spicer announced that Mr Duncan Smith had lost the confidence vote by 90 votes to 75.

The defeat forced him to resign immediately, although it was nowhere near as embarrassing as some commentators had predicted.

Minutes later, Mr Duncan Smith, accompanied by his wife Betsy, stood outside Conservative Central Office and said: "The Parliamentary party has spoken - and I will stand down as leader when a successor has been chosen.

"I will give that new leader my absolute loyalty and support."

Within minutes, the manoeuvring to succeed him began, with news filtering through that Mr Howard would not be challenged by several senior colleagues who had been tipped as contenders.

Along with Mr Davis, shadow home secretary Oliver Letwin, shadow health secretary Liam Fox and former minister Stephen Dorrell all ruled themselves out of the leadership contest and publicly urged Mr Howard to stand.

They said that he "is a political heavyweight" who can "land a few blows on Tony Blair".

It appears that a behind-the-scenes deal has been struck, crowning Mr Howard and allowing the party to avoid a lengthy and damaging leadership battle.

This, it is hoped, will put an end to the internal party warfare which has marred Mr Duncan Smith's two years as leader.

Mr Howard, who was a hard Home Secretary in John Major's Government, is understood to be waiting until today's memorial service for Sir Denis Thatcher has been held before announcing his candidacy.

He will inherit a divided party, because it was the rank-and-file members who elected Mr Duncan Smith and the MPs who dumped him.

In County Durham, Jim Tague, chairman of Bishop Auckland Conservatives, said: "I think it's been a really bad week for the party and the activists.

"We need to find a bruiser to take Tony Blair on in Parliament. Michael Howard has the stature to lead the party. He has the experience to pull everyone together and shake them up."

Ian Galletley, chairman of Cleveland and Durham Conservatives, said: "I am glad it's all over as all Tories will be. They may not like the result but it has gone on long enough.

"I believe if Michael Howard is appointed, we will be a united party. I think that most people want a unity candidate who will bring the party together."

Tony Richmond, leader of the Conservatives in Darlington, said: "We have to move forward now. We have to have a quick resolution and get a new leader.

"Then the very good policies that were announced at the party conference, which did not get the media coverage they deserved because of leadership issues, can be articulated to the public view.

"We have to become an effective opposition to this failing Government.