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Jeremy Corbyn retracted the tacit offer of a peerage to a close ally to instead reward the outgoing general secretary of the Labour Party, the Standard understands.

Sources say Murad Qureshi, chair of the Stop the War Coalition and a former London Assembly member, had been on a shortlist of three Left-wingers whom the Labour leader planned to put in the House of Lords.

However, it is believed his name was withdrawn from consideration following Iain McNicol’s resignation as head of the Labour Party organisation.

Mr McNicol, a former trade unionist, had clashed with Mr Corbyn and was seen as a block to the Left taking full control of the party.

“It looks like McNicol drove a hard bargain, with the peerage part of his price for leaving,” a senior party figure told the Standard.

Mr McNicol’s peerage is expected to be confirmed shortly, possibly next week, alongside places in the Lords for nearly a dozen Brexit-backing Conservatives.

Mr Corbyn’s remaining two choices are Tony Woodley, former co-leader of the powerful Unite union, and former London councillor Martha Osamor, whose daughter Kate Osamor MP is the shadow international development secretary.

A source claimed Mr Qureshi was approached by an aide to Mr Corbyn and asked if he would step aside for Mr McNicol. The Standard understands he said he would not “make life difficult for Jeremy”.

A senior Labour source, asked whether a peerage was withdrawn or if Mr McNicol demanded one, said: “This is categorically untrue on both counts.”

Mr McNicol’s exit from Labour HQ was followed by the resignation last night of executive director for governance and membership Emilie Oldknow.

A moderate who has been Labour’s most senior female staffer for six years, she had been considered a natural successor to Mr McNicol but said in a letter to colleagues she had decided to step down this summer to pursue “other opportunities”.

“With them both gone, Jeremy is now in complete control,” said one senior Labour figure.

A member of Labour’s ruling body, Jasmin Beckett, last night tweeted her concerns for Labour after the departures: “People surrounding Corbyn have always wanted to clear the workers out of HQ and they are now succeeding. Sacrificing experience for obedience.”

The NEC will next week interview Unite official Jennie Formby, now clear frontrunner to take over as general secretary. Her path was cleared when Momentum founder Jon Lansman withdrew from the contest.

Former Labour Cabinet minister Lord Adonis today predicted the new list of working peers will come in days.