In an announcement to the House of Lords, the business secretary opened the door to a "strategic minority partnership with a postal operator with a proven record", saying such a move would help transform Royal Mail.

Mandelson's comments come after the release of the Richard Hooper independent review of the operator, which was commissioned last year.

He added that partial privatisation of Royal Mail would give the business "the confidence, the experience and the capital to make the changes needed to improve performance and face the future".

It was also confirmed that Dutch postal company TNT had expressed an interest in buying in Royal Mail, a move welcomed by Mandelson.

He said such interest will be pursued "in the coming weeks" and encouraged other credible partners to step forward.

Royal Mail's chief executive Adam Crozier said the operator welcomed the proposals.

He said: "The suggestions will help secure the future of the one-price-goes-anywhere Universal Service which is a crucial part of the social and economic fabric of the country and underpins the entire postal industry in the UK."

However, communications union, the CWU, has slammed the move.

General secretary Billy Hayes said: "It is incredible that the British Government, which has led the world in overhauling banks, needs another European postal service to rescue the Royal Mail.

"This was meant to be a report about competition but Mandelson has ignored the damage done through irresponsible liberalisation and advocates more involvement by private companies.

"We welcome the move to Ofcom which recognises both changes in the communications sector and the failings of Postcomm to manage the mail market effectively, however we look forward to receiving more information on future regulation."

Do you support the plans to part privatise Royal Mail? Let us know...