Angela Rayner is likely to play a "leading role in this Government", Sir Keir Starmer has said as his former deputy prepared to launch a podcast ahead of a potential Labour leadership contest.
The Prime Minister insisted the ex-housing secretary and deputy PM had "a lot to offer" as he expressed regret about her resignation last year following revelations she had failed to pay about £30,000 of stamp duty on her new Hove flat.
It comes after Ms Rayner last week criticised Labour’s direction in government, branding immigration reforms "un-British".
The attack was seen as a thinly veiled leadership pitch as Sir Keir’s position looks increasingly shaky ahead of local elections, where polls predict his party will see dire results.
Asked whether the race was on to replace him in No 10, Sir Keir told Sky News' Electoral Dysfunction podcast: "Look, let me say about Angela to start with, she was a fantastic deputy Prime Minister.
"I was very proud of the fact that Angela had come from a really challenging start in life, to then be deputy Prime Minister.
"She's got a lot to offer, and I obviously had a conversation with her on the day that she had to resign, and I regret that she had to resign. It was the right thing to do, but I regret that she had to do it.
"And I said to her, that her contribution to the Labour government and the Labour movement was by no means over. And so I do expect to see her playing a leading role in this Labour government."
Ms Rayner is set to launch the Beyond the Bubble podcast. It will focus on housing and she has spoken to former cabinet minister Michael Gove for the episode.
Interviews with people across the country about the state of housing have been conducted by Ms Rayner, the Times reported.
The show was produced by Global, which owns LBC, but it is not yet clear if the company has yet signed off a full series.
Ms Rayner is widely seen as a potential successor to Sir Keir amid rumblings of a potential leadership challenge following the May 7 council elections as Labour's poll ratings and his personal approval flounder.
Sir Keir sought to manage expectations ahead of the local polls, describing them as "very much sort of mid-term elections" of the kind that incumbent governments historically "pretty well lose".
But asked whether he was "going anywhere," he said: "No. I intend to be judged at the next election on what I've delivered for the country."
In a speech last week, Ms Rayner appeared to highlight a particular concern over Government proposals to double the time it will take to qualify for indefinite leave to remain (ILR) from five to 10 years and its implications for people already in the UK.
Ministers have said debates are welcome in the Labour Party and Downing Street has said the plans are being consulted on, with a Government response to be set out in "due course."