CONSIGNIA, formerly the Post Office, is considering contracting out deliveries and sorting services to the German IT firm Siemens.

The move is one of a range of options aimed at improving productivity being considered in a review of Royal Mail operations by the accountants KPMG, expected to be completed in August, according to details leaked to Computer Weekly.

Sources told the magazine several meetings had already taken place with Siemens.

If Siemens does not get the contract it could go to another commercial company.

Contracting out the service could mean post delivery staff wearing uniforms with the logo of a commercial company.

Consignia said it operated in a highly competitive world and was facing increasing competition in the mail business.

"We are constantly looking at ways to improve performance. We are considering a range of options," said a spokeswoman.

Chris Proctor, a spokesman for the Communication Workers Union, dismissed the proposals as no more than rumour.

He said: "We don't comment on speculation, or we would do nothing else."