DAVID CAMERON is the overwhelming favourite to be the next Conservative leader after winning the backing of almost half of the party's MPs, ahead of a ballot of members.

The self-proclaimed moderniser - at only 39 years of age - will take on the long-time favourite David Davis, in a poll of the 300,000 grassroots Tories starting early next month.

Mr Cameron triumphed at Westminster yesterday, gaining the votes of 34 more MPs than Tuesday's first round of the contest to beat Mr Davis by 90 votes to 57.

The result meant the third contender Liam Fox, who surprised observers by talking for the first time yesterday about longstanding "smears" that he is gay, was eliminated with 51 votes.

Dr Fox gained nine votes from the first round, but it was not enough to overhaul Mr Davis whose vote crumbled - by five votes - but did not collapse, as many had predicted.

His performance was strong enough to stop overnight rumours that he would quit immediately, leaving the way clear for a Cameron coronation.

Nevertheless, Mr Davis, a traditional Tory rightwinger, faces an uphill task to win over a party membership who, according to polls, strongly prefer the youthful Mr Cameron.

A series of 11 hustings will be held around the country, before the result is declared on December 6.

The victor will face Tony Blair across the Commons chamber the following day.

A beaming Mr Cameron emerged to say he would now be travelling to every part of the country confident that, the more people heard his ideas, the more they would like them.

He added: "The great thing about democracy is that you never know the result, but I think I have the right ideas and I have a clear sense of direction for the party."

Mr Davis insisted "there is along way to go" and pledged to prove he was the candidate to win back seats in what have become Tory no-go areas, such as the North-East.

He said a key strand of his vision for an opportunity society was "reaching those parts of the country the Conservative party has not reached for so long".

Dr Fox, who is assured of a plum Shadow Cabinet job, admitted he was disappointed, but said: "We came from behind all the way through and provided everyone with a great run for their money."

Mr Cameron's stunning result was unthinkable before a rapturously-received speech at the Tory conference, in Blackpool, two weeks ago transformed him from an also-ran.

Far from damaging him, the Shadow Education Secretary's refusal to deny he took hard drugs at university has boosted his support as party members smelt a witchhunt.

Privately describing himself as the "heir to Blair", Mr Cameron is seen as offering the attraction of youth when his likely Labour opponent at the next election - Gordon Brown - is 54.

In contrast, Mr Davis' conference speech was seen as lacklustre and the Shadow Home Secretary has struggled to recover his momentum ever since.

The two surviving candidates will meet members of the Conservative party board to agree the format and timing of the hustings, one of which will be in the North-East.