Rumours are racing round Westminster that Tory leader David Cameron has promised a Cabinet job to Haltemprice and Howden MP David Davis.

It is thought Mr Cameron may attempt to buy the support of sections of his party unhappy at the prospect of coalition with Lib Dems and electoral reform.

Mr Davis was unavailable for comment this lunchtime.

Meanwhile, negotiations between the political parties over the shape of the next government are reaching a heightened pitch today, with some sources expecting a conclusion before the end of the day.

Labour and Liberal Democrat teams are expected to meet again after commencing formal talks last night on a possible coalition.

And the Lib Dems are also considering a fresh offer from Conservatives of a referendum on the Alternative Vote voting system for Westminster elections in return for a coalition deal which would put Mr Cameron in 10 Downing Street.

Lib Dem MPs and peers discussed their options for more than two hours in a meeting at the House of Commons that stretched on past midnight.

Speaking as the meeting broke up, party leader Nick Clegg said: "We are keen to settle things as soon as we can. I am as anxious as anyone else."