Philip Hammond is reportedly being lined up to replace Theresa May and become caretaker leader amid growing concerns at her 'inadequate' premiership.

The Chancellor could join forces with Brexit Secretary David Davis as his deputy as part of a dream team ticket to oust the PM before the Tory Party conference in October.

Ministers have reportedly said they would back the move as long as the Chancellor - dubbed 'spreadsheet Phil' - promises to step down in two years after Brexit is negotiated.

The maneuverings will alarm Brexiteers in the party as Mr Hammond backed Remain and is pushing for a 'softer' Brexit which could undermine attempts to tackle immigration.

Philip Hammond, pictured at Mansion House last week, is reportedly being lined up to take over from Theresa May and become caretaker leader for the next two years

A serving minister told The Sunday Times: 'I think Philip is the only plausible candidate for a couple of years, with DD [David Davis] running Brexit.

'He is a more credible caretaker than the current Prime Minister.

'The PM's brand is so damaged it is painful. The calculation that people are beginning to make is that she is so inadequate we can't wait two years with her in place.'

There is frenzied speculation over who will take over Mrs May, whose authority lies in tatters after the Tory Party election disaster.

She is clinging on in No 10 for now, but after weeks of negotiation she has still failed to thrash out a confidence and supply deal to win the backing of the DUP's ten MPs - which will be crucial to her survival.

And Mrs May faces her first tough challenge in parliament since the election as MPs prepare to votes on the Queen's Speech - the government's legislative agenda for the next two years.

Brexit Secretary David Davis, pictured in Brussels last week, could be Mr Hammond's deputy as part of a dream team ticket to safely deliver Brexit

Theresa May, pictured in Liverpool yesterday where she attended celebrations to mark Armed Forces day, is clinging on in No 10. But many of her MPs believe her authority is in tatters after the Try Party election humiliation and that she should be ousted and a new leader installed

The Labour Party, Lib Dems and other opposition MPs are maneuvering to sabotage the government's plans by ta bling amendments to push through their own policies instead.

Boris Johnson had been tipped to take over from Mrs May if she is toppled or suddenly quits.

But he has ruled out running for the top job before 2019, and according to reports which have emerged today a growing number of Conservatives believe Mr Johnson has had his day.

Tory MPs and donors are plotting to 'skip a generation' and install a younger MPs as leader, according to The Telegraph.

And some think Mr Davis, 68, is now too old to be leader.

A growing number of Tory MPs believe that the party should bring in a fresh leader for the next two years and then promise an election after Brexit in 2019.

Mr Hammond was not involved in the party's doomed election campaign, having been frozen out by Mrs May's closest aides.

That will boost his leadership chances as he has not been damaged by the election fall-out.