PM hopeful Andy Burnham could strike a coalition deal with the Lib Dems in the next election.

It could mean a Labour Party led by Burnham could form a majority government with Ed Davey's party if there is no outright winner.

With polls suggesting a hung parliament could well be on the cards, sources close to the would-be PM say talks are possible.

They point to potential common ground between Labour and the Lib Dems including bringing in a new system of proportional representation voting which Mr Burnham is said to have committed to explore.

Currently the predicted 30 per cent vote share the new Makerfield MP could attract in a general election is unlikely to hand the left winger the keys to No 10.

A More in Common poll last month suggested Labour would still only increase its share of the vote in a general election to 30 per cent with Burnham as leader.

Meanwhile Reform UK's share would fall to 27 per cent. Neither party is therefore on course to win a majority and would need to look for bolstering from another party as David Cameron did when he forged a successful coalition with Nick Clegg's Lib Dems to form a government in 2010.

But any thoughts of a coalition may bring back painful memories of Labour's own failure to negotiate a coalition in 2010 when Mr Burnham was one of Gordon Brown's cabinet ministers, leaving them banished to the opposition benches until Sir Keir Starmer's victory in 2024.

One source close to the former Mayor of Manchester said Labour must be prepared for a hung parliament and talks with the Lib Dems as 'Andy only has three years' before a general election has to be held.

They said Burnham's support of electoral reform - replacing the current first past the post scenario - which he revealed on the campaign trail recently, would be the 'perfect starting point' for talks with the Lib Dems, who have long campaigned for what they see as a fairer system.

Electoral reform is also a hot topic among the Parliamentary Labour Party with a group of 64 Labour MPs signing an amendment to the Representation of the People Bill and calling for a national commission on electoral reform just last month.

One MP involved in the campaign said Mr Burnham had already committed to the launch of such a commission early in his premiership.

One source told the Times: 'We should be looking at a whole range of areas where our priorities align.'

Meanwhile another close Burnham ally was still bullish about his chances of taking a majority saying they were 'confident we can win'.

'If we repeat the Makerfield swing, we will more than win the next election,' they said.

Reform of the water industry could also prove fertile ground for an agreement between the two parties.

The two are not a million miles apart in their thinking with the so-called King of the North preferring greater public ownership while Sir Ed Davey has talked about turning private water companies into 'public benefit companies', putting the environment before profit.

Meanwhile the Lib Dem leader was coy about a potential coalition instead suggesting this week that it was Tory leader Kemi Badenoch who would be 'more worried' about questions about coalition.

This week as Mr Burnham's coronation looked increasingly assured as he swept down to London following the Prime Minister's resignation, some Labour sources also sounded a note of caution.

They warned that he must work hard not to alienate voters down south, particularly in Labour constituencies, with his Mancunian working class persona.

Laura Kyrke-Smith, Labour MP for Aylesbury, told ITV on Thursday that she 'has questions' about what Burnham's promise of bringing 'Manchesterism' – which he describes as 'business friendly socialism' to the country would mean.

'He needs to deliver for all of us in the south of the country,' said Ms Kyrke-Smith.

'And as I say, that is where I do still have some questions in terms of what his policy agenda will look like and what it will mean for us.'