Number 10 has stepped back from a fight with peers over a new supreme court.

Downing Street revealed on Thursday that the prime minister will not be seeking to force its controversial plans through parliament after reaching a deal with peers and the opposition.

"Discussions have concluded and the government is contented with the way things will be handled," said the official spokesman.

The future of the bill looked in doubt after peers voted to put the bill in a special select committee - a move that was interpreted as a delaying tactic.

The bill would have abolished the historic post of lord chancellor and ended the right of law lords to sit in the second chamber as the highest court in the land.

Instead of using the Parliament Act, the proposals will be discussed by the committee but with a time limit.

Full details have yet to be revealed but Downing Street said the government was "happy and contented" with the agreement.

"We now believe it should be possible that the Bill can be delivered in a sensible way," he added.