Former Northern Ireland Secretary Peter Mandelson has been appointed chairman of a high-level group promoting closer ties between Britain and Japan.

The MP for Hartlepool will take over from the Tory former Foreign Office minister, Lord Howell, as the chairman of the UK-Japan 21st Century Group at the beginning of September.

His appointment was discussed and approved by Tony Blair and new Japanese premier Junichiro Koizumi at their recent talks in Downing Street.

It is likely to be seen at Westminster as something of a political rehabilitation for Mr Mandelson, who was forced to resign earlier this year over the Hinduja brothers passports affair.

Although he was cleared of any impropriety by Sir Anthony Hammond's official inquiry, Mr Blair has made clear there will be no return to Government for his close ally, who had already been forced to quit the Cabinet once before over his home loan from ex-paymaster general Geoffrey Robinson.

The 21st Century group brings together senior politicians, business leaders and diplomats from the UK and Japan. It was set up in 1984 by then prime minister, Margaret Thatcher, and Japanese counterpart, Yasuhiro Nakasone.

Its members include former cabinet minister and Redcar MP Mo Mowlam