Peter Mandelson has been appointed to the top level post of European trade commissioner.

The new European commission chief, José Manuel Barroso, announced his "strong, independent and credible" team yesterday.

Mandelson, who will be Britain's only commissioner following the expansion of the EU, said he was pleased to take a major economic portfolio.

The former minister said: "I'm excited at being given this responsibility, both for trade policy and the international dimension of competitiveness."

The FT suggests that Mandelson is "guaranteed a high profile" given both the importance of his position and the up-coming global trade negotiations.

A spokesman for the prime minister said Tony Blair was "delighted that Peter Mandelson has been given such an important portfolio".

The Times reports that Mandelson only took the commission posting after rejecting the opportunity to return to the Cabinet after the next general election.

Blair reportedly offered his ally the serious prospect of a government job in the third term if he remained at Westminster.