ANGELA EAGLE has delivered a clear threat to Jeremy Corbyn that she will mount a leadership challenge if he does not step down.
The former shadow business secretary declared she had the support to move against the Labour leader in order to end the "impasse" at Westminster.
Mr Corbyn is clinging on to his position despite an overwhelming vote of no confidence in him from his own MPs.
READ MORE: McCluskey offers to broker Labour peace deal as he decries "political lynching" of Jeremy Corbyn
Ms Eagle, who was expected to launch a leadership challenge last week, warned that the threat of a contest had not gone away.
She told Sky News: "There are many people, MPs, party members up and down the country, asking me to resolve the impasse and I will if something isn't done soon."
She added: "I have the support to run and resolve this impasse and I will do so if Jeremy doesn't take action soon."
Ms Eagle's comments came after shadow chancellor John McDonnell - a Corbyn ally - appealed for calm in the Labour ranks.
Mr McDonnell hit out at the "mass hysteria" among the party's MPs, which has seen scores of frontbenchers resign and last week saw a no-confidence motion backed by 172 votes to 40.
Ms Eagle said that Mr Corbyn was refusing to engage with deputy leader Tom Watson to try to find a way out of the leadership crisis.
She said "It's a week since Jeremy lost that vote of no confidence and there are many other people up and down the country wanting him to consider his position.
"He is not properly engaged with even the deputy leader of the party, who was elected with a mandate too. It is now time that he did so."
But Mr McDonnell told Good Morning Britain: "Now is the time to sort of calm down, everyone calm down.
"Since the referendum there's sort of been mass hysteria in virtually all our political parties and I can't completely understand it.
"I've never seen anything like it, allegations being made, claims being made. Untruths being said."
Mr McDonnell denied claims in a tweet posted by a Labour MP on Sunday night that said a deal was being struck for Mr Corbyn to stand down in return for the shadow chancellor being put on the ballot paper.
He said: "That has never been discussed. Last week I was accused of a coup against Jeremy myself. This week I was accused of forcing him to stay in. It gets ridiculous."
Both Ms Eagle and her former shadow cabinet colleague Owen Smith are believed to be considering staging a leadership challenge but union leaders have insisted they can broker a peace deal between the warring sides.
Unite boss Len McCluskey said Mr Corbyn was the victim of a "political lynching" but insisted the leader would not quit.
READ MORE: McCluskey offers to broker Labour peace deal as he decries "political lynching" of Jeremy Corbyn
Mr Corbyn will be questioned by MPs later over anti-Semitism in the Labour Party after stoking controversy at the launch of a report into the issue last week.
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