The United Nations confirmed on Thursday that Blair is under discussion to fill the vacant position of Middle East envoy.

"The issue was raised with (UN) Secretary General (Ban Ki-moon) during different conversations with some Quartet principals," said UN spokeswoman Michele Montas.

On Wednesday, Blair is due to hand over the reins as Britain's prime minister to Gordon Brown after a decade of holding the post. The 54-year old has made clear he's not ready to retire from the world stage.

Two senior US administration sources said Blair's aides indicated he was interested in the position, the BBC reported. The prime minister's spokesman said there was lots of speculation over Blair's future, much of it "inaccurate," according to the BBC.

The White House on Thursday refused to confirm or deny reports that Bush wanted Blair to take up the post.

Olmert enthusiastic

Israel's premier would welcome Blair as envoy, a spokeswoman said Friday.

"Prime Minister Olmert sees Tony Blair as a very positive figure in the region and he would be very happy to see him continuing to be involved," Miri Eisin told AFP.

Britain's conservative Daily Telegraph wrote on Friday that Blair should take the job, though it pointed out that his relationship to Russia was strained and he was reviled in the Arab world "as the invader of Iraq and … Bush's closest foreign ally."

However, the paper went on, "he had shown in Northern Ireland his patient expertise as a negotiator, strikingly vindicated by last month's restoration of devolved government. He will also carry the heft of a world leader, an authority that could not be wielded by the last holder of this role."

Former World Bank chief James Wolfensohn resigned in May 2006 after one year as Middle East envoy. He was frustrated by the slow implementation of the Quartet's so-called Road Map, which was supposed to lead to the creation of a Palestinian state by 2005.