Angela Eagle is to announce a formal challenge against Jeremy Corbyn for the leadership of the Labour party on Monday, after the deputy leader, Tom Watson, announced that union-backed talks over a compromise had collapsed.

Watson claimed that Corbyn had torpedoed any hope of talks progressing by publicly declaring his intention to stay on as leader “come what may”.

In a statement released on Saturday morning, Watson said that with “regret and profound sadness” he had concluded that there was “little to be achieved” in continuing discussions between the unions, who are largely backing Corbyn, and key members of the parliamentary party, including chief whip Rosie Winterton and parliamentary party chair John Cryer.

It is understood that Watson had been privately asking the two key contenders for the leadership, Eagle and Owen Smith, to hold back from launching their campaigns to allow further time for an agreement with Corbyn to be made.

Watson’s statement suggested that he was now content for the contenders to publicly state their intentions to challenge Corbyn, who is resolved to stay on in his post despite the widespread lack of confidence in his role among MPs.

Eagle subsequently said she would announce a bid for the leadership of the Labour party on Monday morning, adding that she would “explain my vision for the country and the difference a strong Labour party can make”.

Eagle, who was shadow business secretary before resigning from Corbyn’s frontbench, said: “I want to thank our deputy leader, Tom Watson, the chair of the parliamentary Labour party, John Cryer, and chief whip Rosie Winterton, and the union movement for trying to find a solution to the impasse Labour faces, with a leader who has failed to fulfil his first and foremost duty.

“That is to lead an organised and effective PLP that can both hold the government to account and demonstrate we are ready to form a government in the event of a general election. On Monday morning I will announce my candidature for leader of the Labour party. I will explain my vision for the country and the difference a strong Labour party can make.”

Watson’s statement explained: “Since the talks began, Jeremy has publicly declared his intention to continue as leader come what may. This means there is no realistic prospect of reaching a compromise that satisfies the majority of colleagues in the PLP.

Tom Watson, Jeremy Corbyn and Angela Eagle during a referendum event in London. Photograph: Frank Augstein/AP

“It is with regret and profound sadness that I have concluded there is little to be achieved by pursuing wider conversations with our union affiliates at this time.

“The Labour party was founded with the explicit aim of pursuing the parliamentary path to socialism. Every Labour leader needs to command the support of their MPs in the parliamentary Labour party, as well as party members, in order to achieve that. It is clear to all that Jeremy has lost the support of the PLP with little prospect of regaining it.”

Watson said he felt that significant progress had been made in the talks between the unions and the parliamentary party representatives, in a sign that there may be some doubts among union leaders over the sense in Corbyn continuing. But the deputy Labour leader appeared to suggest that Corbyn’s intransigence, based on the democratic mandate earned from his landslide victory in the leadership election last September, and the firm resolve among MPs to unseat the leader, had meant that progress was impossible.

He said: “I felt we made significant progress during those talks, which were designed to find a solution to the impasse the party finds itself in. It is my strong belief that those discussions could have formed a basis for further talks with union representatives.

“However, since the talks began, Jeremy has publicly declared his intention to continue as leader come what may. This means there is no realistic prospect of reaching a compromise that satisfies the majority of colleagues in the PLP.”

Owen Smith could also launch a leadership bid. Photograph: Gareth Fuller/PA

A spokesman for Corbyn said he “has reached out to Labour MPs and made clear he wants to work with them to carry out his role as elected leader of the party”.

He added: “Jeremy regards the talks with trade union leaders as a vehicle to bring people together, and it is disappointing that some have walked away from them. Jeremy is committed to fulfilling all his responsibilities as democratically elected leader and will not betray the hundreds of thousands of people who elected him for a different direction for the Labour party and a different kind of politics.

“He continues to be fully committed to working with the parliamentary Labour party and is ready to talk with as many people as necessary to assist that process, discussing policy initiatives and listening to ideas. He will remain leader of the Labour party and will contest any leadership challenge if one is mounted.”

Corbyn’s leadership was plunged into crisis after Britain’s vote to the leave the EU in the referendum last month, with large numbers of his shadow cabinet resigning and publicly stating they had no confidence in his leadership.

The mass departure of senior cabinet ministers came after Hilary Benn, the former shadow foreign minister, was sacked for his alleged involvement in a coup against the leader. A series of tense meetings of the PLP have been held in subsequent weeks but the challenge has faltered following Corby’s refusal to stand down.

Meanwhile, Smith, who is also expected to announce a leadership bid, declined to say whether he would challenge Eagle and Corbyn. “I am deeply disappointed that talks about the future of our party appear to have broken down,” he said. “I know Tom Watson has worked tirelessly in a bid to reach agreement and respect his view that he cannot take this process any further.

“I am continuing efforts to heal divisions through dialogue and intend to meet with Jeremy as soon as possible to explore any and all avenues to save our party. This is the greatest crisis facing Labour in generations and it comes at a time when our country is in desperate need of a united Labour party to speak for Britain.



“I remain extremely concerned that a small number of people from both the left and right of our party seem intent on letting it split. The Labour movement must come together to avoid this at all costs. I remain committed to doing anything necessary to prevent a split and unite the party.”