London, May 7 (IANS) With the Labour party suffering heavy electoral losses, Foreign Secretary David Miliband was set to challenge Prime Minister Gordon Brown for the party leadership, a report said Friday.

The Sun reported that Thursday night saw Miliband preparing to strike as a disaster was predicted for Labour in the Thursday general elections.

Miliband is a favourite to succeed Brown. He has received support from former prime minister Tony Blair and Business Secretary Peter Mandelson.

Miliband won from the South Shields constituency with 52 percent of the votes. Conservative candidate Karen Allen stood second while Liberal Democrat Stephen Psallidas was third.

Miliband’s allies are keen that MP Jon Cruddas becomes Miliband’s deputy in what they call a ‘dream ticket’ for the leadership.

The media report said that Miliband was urged to have a proper contest for the leadership instead of an unelected takeover like Brown when he succeeded Blair.