Labour's National Executive Committee has voted by a significant margin to pave the way for Ken Livingstone's return.

The party's ruling body voted by a margin of 25 to two in favour of moves to bring Livingstone back into the Labour fold.

The officers of the NEC will now meet Livingstone in the New Year to seek assurances that he will abide by Labour rules.

If he agrees, then Labour's London members must also back him as the party's mayoral candidate.

Senior Labour figures had been fighting a rearguard action to prevent Livingstone being readmitted to the party.

Deputy prime minister John Prescott has told Labour MPs that the readmission was "not a done deal".

But the former Labour MP, who was expelled after he stood as an independent mayoral candidate, does now appear set for a controversial comeback.

Ian McCartney, the party chairman, and most London Labour MPs support Livingstone's return.

Downing Street sounded a conciliatory note ahead of the NEC meeting despite accepting there were still "differences of view".

"The prime minister has recognised that in terms of the congestion charge it has been a successful policy and one that we would wish to look at," said the official spokesman.

And Labour's London board overwhelmingly endorsed a proposal that the mayor should be asked to rejoin the party.

One sticking point had been the election by party members of Nicky Gavron as the official Labour candidate.

But the former deputy mayor has signalled she is willing to step aside in the interests of "party unity".

"The situation we find ourselves in is unique. The overwhelming view of members is that they don't want to choose between Ken and myself at the ballot box," said Gavron.

"That is why I am supporting Ken's re-admission to the Labour Party and his adoption as Labour candidate. This is the right decision for Labour and London. By combining our strengths on a joint campaign, Ken and myself are a winning team for Labour."

And on Monday London Labour MP Karen Buck said after the meeting that a "consensus" had been reached.

"I believe that Nicky has felt, after consultation and looking at the position of the Labour Party, that it would be in the best interests of London Labour for her to stand aside," she said.

London Labour chairman Len Duvall added that Livingstone had proved he could work within the party.

"There was recognition that Ken had been working hard to support the Labour government and had been working alongside Labour members of the GLA," he said.

"There was a feeling that this was the right time to consider readmitting Mr Livingstone."

Speaking at his weekly press conference on Tuesday, Livingstone likened his relationship with Labour to that of a divorced coupled who want to get together again, having realised they missed each other.

However the mayor played down reports that he would be forced to sign up to government policies and temper his remarks on controversial subjects.

"Of course they want me back," he said. "[But] we are talking about grown-ups coming to terms with the political reality.

"We have disagreements but in a grown-up world we should be able to handle that."

But a raft of senior Labour MPs, including deputy prime minister John Prescott, have slammed the move.

They claim Livingstone cannot be trusted to remain loyal to the party he deserted.

On Monday Neil Kinnock hit out at the possibility of Livingstone's return to Labour.

The former party leader said the mayor could not be relied upon to remain loyal to the party.

"I am fundamentally and irretrievably against it. Ken Livingstone has only ever belonged to one party - the Ken Livingstone Party," he told the BBC's Today programme.

Livingstone was expelled from Labour in 2000 after he announced he would stand as an independent following his failure to secure the official nomination.

Kinnock said the mayor should remain exiled from the party. "There is no possibility, whatever his immediate future, of the Labour Party being able to rely upon sufficient loyalty and commitment to its aims and obligations," he said.