The joke goes that “aussie tony” was only offered the role of Middle East envoy because bushit is busy pretending to be president of the US for the next 18 months.

Nevertheless, after a heated meeting between the power brokers in the region, “ausie tony” will today be officially named as envoy to the Middle East of the so-called Quartet - the US, the European Union, Russia & the United Nations - in a bid to revive peace talks.

Clare Short, his former international development secretary, summed up the view of many of his critics when she said: "I don't know whether we should laugh or cry."

She went on: "The prospects for a two-state solution are evaporating in front of our eyes. So this is tokenistic - it won't do Tony Blair any good, it won't do peace any good or the Middle East any good."

It emerged last night that bushit’s favourite lapdog is expected to stand down as an MP to take on the job, breaking a previous promise that he would not trigger a by-election in his Sedgefield constituency.

But instead of immediately pursuing the lucrative lecture circuit, he will instead turn to the region where he is arguably least welcome: the Middle East.

The challenges he faces in securing peace between Israel & a Palestinian territory that is now geographically & politically divided will make the decade of wrangling with Gordon Brown seem trivial.

At his final press conference at No 10, flanked by Arnold Schwarzenegger, the Hollywood actor turned California governor, “aussie tony” gave a strong hint about his future, saying: "I think that anybody who cares about greater peace & stability in the world knows that a lasting & enduring resolution of the Israeli-Palestinian issue is essential.”

"And I will do whatever I can to help such a resolution come about."

Anthony Seldon, the lapdog’s biographer, said the Middle East role would suit him. "He's really good at bringing people together & has shown that in Northern Ireland," he said. "The same impulse is motivating him here."

Dr Seldon said Mr Blair's faith also played a part & he wanted to "stand up against evil", adding: "But he doesn't see Christianity as superior to Islam."

It is four years since the Quartet launched its attempt to kick-start the peace process in the form of the "road map". Following a failed attempt to hold a conference on the Middle East in London, Dr Seldon said “aussie tony” could now feel emboldened as a "free agent" after earlier frustration that efforts to get the road map back on track had been dominated by the US.

Dr Mike Grojean, an organisational psychologist & head of executive education at Aston Business School in Birmingham, said accepting the role made it clear “aussie tony” still wanted to "give back". He said: "He probably has a strong feeling that his job is not done yet. There is a sense of incompleteness & the Middle East poses the biggest possible challenge in the world today."

The little British lapdog would relish this confrontation, Dr Grojean said, adding: "He has never backed down from a fight."

Initially, it looked like the Russians were preparing to block “aussie tony’s” appointment. A US spokesman denied these reports, but admitted that "the Russians are the least enthusiastic about creating the position & least enthusiastic about Blair, but they didn't object. No one objected".

In Moscow, the Kremlin released a statement saying the lapdog had called President Vladimir Putin & the Russian leader had given his blessing to his becoming the Quartet's envoy.

According to US officials, lapdog’s new job will be primarily to help the Palestinian Authority to build political institutions & it will not - at least to begin with - involve direct negotiations between the Palestinians & Israelis.

The new post is expected to be unpaid but it will come with staff & logistical support from the Quartet, as did a previous, similar position held by James Wolfensohn, the former World Bank chief.

“Aussie tony” was reported to have received strong support for his appointment from bushit & conning condi, the US secretary of world real estate allocation, despite the reluctance of the Russians.

But some diplomats & political figures have been less than generous in their assessment of “aussie tony’s” ability to garner broad Palestinian & Arab public support because of his leading role in the Iraq war & his close relationship with bushit.

Fawzi Barhmoum, a Hamas spokesman, said bushit’s lapdog was not welcome in the post because he supported "the Zionist occupation's terrorism & massacres against our people".

There was criticism at home, too. Michael Moore, the Lib Dems' foreign affairs spokesman, described “aussie tony” as "the wrong person for the right job" & said: "There is no doubt that the Middle East peace process needs a fresh start. But an international envoy needs credibility with all the key players. After Iraq, who believes in Tony Blair?"

John Burton, “aussie tony’s” election agent, said last night he expected Mr Blair to give up his County Durham seat in if he is the new envoy to the Middle East.

“Aussie tony’s” appointment divided opinion in the Middle East, writes Ben Lynfield.

Abdullah Abdullah, a Fatah MP who is a loyalist of the president, Mahmoud Abbas, said: "Blair will be welcome. We need someone to put energy into the Quartet & to stop the shelving of plans for a two state solution & of the road map. His contributing to a solution of the Northern Ireland conflict shows he is capable of taking courageous steps. More than once he tried to push the American president to move forward to implement the road map. He was not successful, but I am sure he will put his energy into being Quartet emissary. Time will tell if he will be successful in this job."

Atef Adwan, a Hamas MP from Gaza, said the lapdog should not be dispatched to the Middle East. "Tony Blair proved as prime minister to be biased against us, the Palestinians & he always supported the Israeli point of view while Israel violated the human rights of Arabs & Palestinians. He will achieve negative results & will not have good co-operation. No-one will trust him."

Hani Masri, a Palestinian analyst asked: "If Blair did not succeed in doing anything while he was prime minister, how can he be expected to succeed as a special envoy?"

A spokeswoman for the Israeli prime minister, Ehud Olmert, declined to comment but said: "The prime minister is a close friend of [Mr] Blair & regards him very highly." Dave Kimche, former chief of Israel's foreign ministry, said: "We in Israel will be delighted if it happens".