Gordon Brown is ready to hand over the Prime Minister's power to appoint the Archbishop of Canterbury, it was revealed yesterday.

He wants to grant the Church of England operational independence in a move that will give it the right to select its own bishops and archbishops and has already asked officials how he can best renounce his "powers of patronage", according to a Sunday newspaper.

A source close to the Chancellor confirmed the move, which is among broader plans to give up certain powers bestowed on the Prime Minister under the royal prerogative.

A spokesman for Mr Brown said: "We're not going to comment on every piece of speculation."