Mr Michael Portillo is to act as Mr William Hague's campaign manager in the event of a vote of confidence in the Tory Party leader following the election.
According to the
Sunday Telegraph
newspaper, the shadow chancellor does not want the leadership in the foreseeable future.
The paper says he has agreed to be Mr Hague's right-hand man in a vote aimed at heading off an open leadership contest.
The reported deal comes after Mr Portillo pledged "complete loyalty" to the Conservative leader following allegations he was plotting to become party leader.
Former chancellor Mr Ken Clarke was said to have agreed to back him in a leadership contest, returning to the frontbench in return for delivering the support of the Tory left.
But Mr Clarke dismissed the reports as "complete fiction" after Mr Portillo's loyalty pledge.
A senior party official told he Sunday Telegraph that Mr Portillo would have to back Mr Hague "to the hilt" after saying he would not stand against him in a leadership contest.
A Tory spokesman said: "The Conservatives are focusing on an election victory which will result in Michael Portillo becoming Chancellor and William Hague as Prime Minister.
"Neither William Hague nor Michael Portillo will allow themselves to be distracted from this task by stories such as these."
PA