FORMER Cabinet Minister Peter Mandelson has produced evidence that throws new light on his involvement in the millionaire Hinduja brothers' passport applications.

Downing Street confirmed last night that Prime Minister Tony Blair had reopened the inquiry into the affair, which cost the Hartlepool MP his job as Northern Ireland Secretary a year ago.

His resignation from the Cabinet in January last year came before the completion of the original Hammond inquiry last March, and was not a result of the former Treasury solicitor's findings.

It is thought a new report clearing his name of any suspicion of improper behaviour might make a return to frontline politics possible.

A Downing Street spokesman said: "The inquiry has been reopened because some further papers came to light and the Prime Minister asked Sir Anthony Hammond to review them and address whether they would have affected the conclusions of the original inquiry. We expect Sir Anthony to conclude his review shortly. We expect it to be published.''

It is understood that Mr Blair asked for the inquiry to be reopened shortly before Christmas.

The original Hammond inquiry cleared Mr Mandelson of any impropriety, but left a question mark over the key point of whether he phoned then Home Office Minister Mike O'Brien about the Indian brothers' passports in 1998.

Hammond accepted Mr Mandelson's evidence that he had "no recollection" of calling Mr O'Brien about the brothers, who donated £1m to the Millennium Dome, for which Mr Mandelson had responsibility, but he concluded it was likely that Mr Mandelson had made the call.