A special investigative panel of the World Bank has delayed distribution of a report on the conduct of Paul Wolfowitz at the request of the US Treasury amid crisis talks in the Bush administration.

The panel withheld for several hours yesterday a report to the board that is expected to reaffirm its draft finding that Mr Wolfowitz violated conflict of interest rules in his handling of a secondment package for Shaha Riza, a bank employee to whom he was romantically linked.

The delay came amid increasing transatlantic diplomacy and internal debate in the Bush administration about the World Bank issue.

President Bush has been consistent in his support for Mr Wolfowitz and is deeply reluctant to let the bank president - whom he nominated for the job - be driven from office.

Last night it still appeared likely that Mr Bush would instruct his officials to keep up the fight and intensify an international lobbying campaign to save Mr Wolfowitz's job.

US officials believe foreign ministers, finance ministers and some heads of government may yet be persuaded to overrule board directors and development ministers hostile to Mr Wolfowitz.

However, early contacts by officials from the State Department and US Treasury appear to show that many other countries with significant shareholdings and votes at the bank are implacable in their determination to see Mr Wolfowitz depart.

The tangible threat of a hostile vote to fire Mr Wolfowitz could yet tip the balance of debate in the administration.

Mr Wolfowitz is due to appear before the bank's board today to make a final defence of his actions. After this, the board will discuss whether he can continue to be effective in his job in the light of the findings.- (Financial Times service)