Tony Blair has suggested that the US and Britain will begin handing over control of parts of Iraq after Sunday's national elections.

But the prime minister, interviewed in the FT, ruled out setting a firm deadline for the US and UK to withdraw from the country.

"There are areas where we would be able to hand over to those Iraqi forces. Remember, 14 out of the 18 provinces in Iraq are relatively peaceful and stable", he said.

He added: "Both ourselves and the Iraqis want us to leave as soon as possible. The question is what is 'As soon as possible?' And the answer to that is: when the Iraqi forces have the capability to do the job."

Blair also said that the main focus Britain's presidency of the G8 will be to construct "an agenda of consensus" between the US, Europe and the rest of the world.

He claimed that US foreign policy was undergoing an "evolution . . . that has been underestimated by people".

Meanwhile, the Independent claims that Blair will avoid direct criticism of George Bush's record on climate change in his keynote speech to business leaders at the world economic summit in Davos.

At a breakfast seminar in Downing Street yesterday, green lobbyists urged the prime minister to be tougher.

An adviser to Blair said: "Green groups were quite tough on Tony. They said, 'We like what you are saying, but you have to deliver.'"

And the Mirror reports that Blair is finally poised to accept the Congressional Gold Medal - 18 months after George Bush first offered it.

In the event of a Labour victory in the general election, the prime minister is tipped to receive the award on his first trip to Washington after the poll.