Michael Howard's top election strategist has told him that the Conservatives will not win the next general election.

Lynton Crosby, the Australian strategist who delivered the news, is at the centre of a power dispute at Conservative campaign headquarters, reports the Times.

Crosby is said to have contradicted advice from Lord Saatchi, the party co-chairman, who believes that the Tories should fight to win, or at least deny Labour a majority.

Crosby says Howard should concentrate on an attempt to increase his strength in parliament by 25 to 30 seats.

A senior Tory source told the Times last night: "It is terrible for us out there. The polling suggests at best we can win up to 25 seats. But Saatchi is telling Howard that the election is all to play for and that we should fight to win the 165 seats required to give us a majority.

"The fact is that in the marginals we are actually losing ground. Crosby is saying it is madness to fight to win 165 seats when we can’t win 65."