PETER Mandelson came back from the dead once after the home loan scandal, only to be embarrassingly ousted from Government again in the wake of the Hinduja brothers passport affair.

A bitter man - passionate in the belief that an injustice was done - Mr Mandelson declared he wanted nothing more to do with Cabinet posts, set about consolidating his position as MP for Hartlepool, and took great delight in twisting the knife into his humiliated election opponent, National Union of Mineworkers leader Arthur Scargill.

So, with the election out of the way, are we now seeing the start of Mandelson's Return - The Sequel?

On Friday, there were the first pictures of him with the Prime Minister since his proud tenure as Northern Ireland Secretary was snatched from him.

And that has been followed by news that he will this week be named as chairman of one of the Government's most high-powered policy think tanks.

It coincides with authoritative weekend reports that Tony Blair has made up his mind to fight for a third term, frustrating the ambitions of great rival Gordon Brown to become Prime Minister.

Given that Mr Mandelson was cleared of impropriety in an official inquiry into the Hinduja affair, Mr Blair may now regret the sacking of his close ally.

And if he is intent on a bid for a third term - and who can blame him, given the depressing turmoil within the Tory Party? - a second return from the wilderness for Mr Mandelson may become more and more tempting.

It is already clear that Mr Blair wants the behind-the-scenes influence of his friend to be put on a more formal footing.

Although he may be tainted as accident-prone as a Cabinet minister, Mr Mandelson retains a track record as a supreme strategist, and that is precisely what the Government needs.

The messy debate over the extent to which the private sector will play a part in delivering public services - a theme certain to be highlighted at this week's TUC conference - is a prime example.

No one has taken charge, no one has come up with a strategy. With health and education so crucial to Mr Blair's dream of a third term, it is not hard to see why the Prime Minister might want Peter Mandelson's guiding hand to be restored.