Peter Arnold, who led the Lib Dems to their stunning victory over Labour in Newcastle in 2004, could stand down after the May elections.

Coun Arnold today refused to rule out the possibility that he will quit as council leader amid growing speculation.

Labour opposition leader Coun John O'Shea claims some Lib Dems want to ditch Coun Arnold and it is now an "open secret" at the Civic Centre that he intends to go.

Coun Arnold said he knew nothing about any move to force him out and senior colleagues angrily denied the suggestion.

Coun Arnold said at the end of the day it would be a matter for members of the Lib Dem group, who will elect their group officers after the May 4 poll.

Asked if he is considering standing down as leader, he said: "I am not ruling it out or in. I will comment after the local elections.

"When you are city council leader there are always discussions about what is the right time to stand down or step aside.

"At the moment we are concentrating on running the city council and running the election campaign. We are not going to be diverted by any speculation which comes from John O'Shea.

"There is always the possibility there could be a change. By the same token, it is equally likely that I will continue as leader."

Coun O'Shea claimed some Lib Dems want to replace Coun Arnold with his deputy, Coun John Shipley.

He said the speculation is that Coun Arnold will be offered the job of sheriff and deputy lord mayor, which means he would become lord mayor the following year.

"It's an open secret at the Civic Centre that some members of the Lib Dem group want Coun Arnold replaced," said Coun O'Shea. "Senior officers are preparing themselves for this to happen."

The claim brought an angry response from leading Lib Dems, who say there is no question of Coun Arnold being forced out.

They accused Labour leaders of trying to deflect attention from their own problems in the run-up to the local elections. Coun Arnold, a former teacher, who represents Gosforth East, was first elected in 1995 and has been group leader since 1998.

If he decides to stand down, his deputy, Coun John Shipley, would be favourite to succeed him.

One Lib Dem executive member, Coun Anita Lower, rejected the Labour claims and declared: "Peter Arnold is leader. We don't have group elections until May and we haven't had any nominations for sheriff.

"It's sad that Coun O'Shea is trying to deflect attention from weaknesses in the Labour Party by trying to attack the most successful Liberal Democrat leader the city has had."

Coun Shipley said the Lib Dem group agreed in March that there would be no discussion about the election of group officers until after May 4 and he accused Labour of trying to divert attention from its own problems. "There is no move to force out Peter Arnold," he said.