Murdoch set to back Blair - for a place in his boardroom at Fox News

Allies of Mr Blair insist he has made no decisions about his plans when he leaves Downing Street -- almost certainly next year. But some friends say a seat on the board of News Corp could tempt the outgoing Prime Minister, as it would dovetail neatly with the lucrative United States lecture circuit. Mr Blair's popularity at home may be waning, but he remains big box office in America. His close relationship with Mr Murdoch will be highlighted tomorrow when he addresses the annual gathering of News Corp's executives and senior journalists from around the world.

After meeting President George Bush at the White House yesterday, Mr Blair flew on to California where, amid the stunning scenery at Pebble Beach, 130 miles south of San Francisco, he will speak about "leadership in the modern world".

The five-day event is entitled Imagining The Future, reflecting Mr Murdoch's recently-discovered interest in new media. Other star guests are expected to include Bill and Hillary Clinton; Arnold Schwarzenegger, the Terminator turned Governor of California; Bono, the U2 singer and campaigner for the developing world; Shimon Peres, the Israeli Vice Premier; and former US Vice-President Al Gore, who will show his film on climate change.

Mr Blair's appearance is seen as a mutual "thank you" as he enters the final phase of his premiership. Mr Murdoch admired Mr Blair's support for President Bush over the Iraq war, which his newspapers around the world endorsed.

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