Sir Alan Sugar will receive a peerage as part of a new enterprise role in the Government, a source said today.

The businessman, who has been in talks with the Prime Minister, is expected to be given a seat in the House of Lords as part of Gordon Brown's reshuffle.

A spokesman for the multi-millionaire businessman would not comment on the move but details of the appointment were believed to have been ironed out yesterday in Downing Street.

Sir Alan, famous for his catchphrase ``you're fired'' on television show The Apprentice, was seen slipping into Number 10 yesterday morning.

A long-standing friend and supporter of Mr Brown, he is also a member of the Premier's Business Council for Britain, which advises him on issues affecting enterprise and the economy.

Sir Alan gave no hint of his pending appointment during TV interviews today but offered his full support for the Prime Minister.

He insisted the Premier would not stand down: ``I am pretty sure that if it was as dire as you are making out he would have done the right thing.

``He is not going to step down and the reason for that is that he must have the support of the good people and of the right people.''

Asked about the resignation of former Work and Pensions Secretary James Purnell he said: ``You will always have some people who will jump ship, there is no question of that. There are always people, not only in politics but in business that don't agree with certain things.

``One person writing a letter doesn't mean that everyone is collapsing like a pack of cards.