As a decision looms from the British government on whether its five economic tests for adopting the euro have been met, all the signs are that Britain is not yet ready to say goodbye to the pound.

Widespread press reports suggest that British Prime Minister Tony Blair and his Chancellor of the Exchequer Gordon Brown have already agreed that the verdict of the self-imposed tests will not be "Yes", the prerequisite for a public referendum on the issue.

But Blair, who has made no secret of his desire to lead Britain into the euro zone, is expected to argue for the door being left ajar to a euro referendum before the next election, due in mid-2006 at the latest.

A decision on the tests is due by the first week of June but expected earlier.

With the premier trying to mend fences in the wake of the diplomatic rift over Iraq, a "Not Yet" verdict rather than an outright "No" could limit the damage to already fraught relations with European partners such as France and Germany.

"Blair would like to leave a window open which might make a referendum in this parliament still possible, although I think it's actually quite unlikely," said Wyn Grant, Professor of Politics at the University of Warwick in central England

While economics will almost certainty take the blame for the verdict, experts say that politics arguably present a bigger hurdle for Blair given weak support within Britain for joining the euro.

"This is really about the possibility of winning a referendum, which I think has actually diminished even further in the recent past," said Grant.