LABOUR leader Tony Blair yesterday announced that he is to replace the

party's general secretary Larry Whitty.

Mr Whitty, who has held the post for nine years, will be moved to the

new position of European co-ordinator with responsibility for liaising

with the party's Euro-MPs.

Labour sources insist it is a ''positive'' move for Mr Whitty, but he

will be vacating the key position at the head of the party's

organisation.

It also will give Mr Blair the chance to get a candidate of his choice

installed -- and is likely to form part of a wider shake-up at the

party's headquarters.

One party source said: ''When you have a new leader, it is inevitable

that there is some sort of shake-up.''

Mr Whitty will continue as general secretary until a successor is

appointed by the national executive committee some time in the autumn

after the party conference.

One likely candidate is Mr Tom Sawyer, a senior official in the public

sector union Unison and one of the most experienced members of Labour's

executive. He reportedly impressed party modernisers with his role in

helping to deliver victory for the late Labour leader John Smith's

one-member one-vote proposals.