Kenneth Clarke and Iain Duncan Smith are preparing to stand in the Conservative leadership contest.

Speaking yesterday, Kenneth Clarke gave his first public indication that he is considering standing against Michael Portillo for the Conservative Party leadership.

Speaking at his London home on Thursday, the former Conservative chancellor told reporters he would like to be leader but would not make a final decision on whether to stand for about 10 days.

Clarke said the central problem was whether he could lead a party that had fought a eurosceptic election campaign. The Times believes that he is "watching and waiting" to judge the reaction to his candidature form the Tory grassroots. In a Times interview, Stephen Dorrell backs the Portillo bid - he supported Kenneth Clarke in 1997.

Iain Duncan Smith has "told friends" that he is "inclined to run" according to the Telegraph.