The leader of Britain's biggest trade union has angrily attacked a decision by Tom Watson to call off a meeting over the Labour leadership as an "act of sabotage".
Len McCluskey, general secretary of Unite, said a workable plan to resolve bitter differences between Jeremy Corbyn and the Parliamentary Labour Party had "never been closer".
Mr Watson announced that a planned meeting on Sunday with Mr McCluskey and other leading Labour figures would not go ahead.
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Mr Corbyn vowed to fight a leadership challenge from former shadow business secretary Angela Eagle as the peace talks collapsed.
The Labour leader's spokesman said it was "disappointing" that his deputy Mr Watson had walked away from the union-brokered talks which were attempting to end the impasse between the embattled Mr Corbyn and his MPs.
The collapse of the talks prompted Ms Eagle to announce her intention to fight for the leadership, saying Mr Corbyn had failed "to lead an organised and effective" Parliamentary Labour Party and she would set out her "vision for the country" on Monday.
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Mr McCluskey said: "I am dismayed at the statement issued by Tom Watson announcing his withdrawal from talks aimed at resolving the crisis in the Labour Party.
"Extraordinarily I received no notice of this statement before it was issued. I had made arrangements for a meeting of trade union leaders, Tom Watson and representatives of the PLP and the party leader for tomorrow, arrangements requested by Tom Watson and his colleagues, specifically for Mr Watson's convenience.
"In that context, when the possibility of a workable plan had never seemed closer, Tom Watson's actions today can only look like an act of sabotage fraught with peril for the future of the Labour Party.
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"I must clarify one point in Tom Watson's statement - I made it absolutely clear from the outset of these discussions that Jeremy Corbyn's resignation as the leader was not on the agenda.
"Mr Watson knew that, and it is entirely wrong to suggest that any public statement by Jeremy represented any change in the situation.
"This is a deeply disingenuous manoeuvre.
"I will continue to work with trade union colleagues and others to chart a way forward, including meeting the legitimate concerns of Labour MPs.
"Should there have to be a leadership election, I must warn that any attempts to keep Jeremy Corbyn, elected just 10 months ago with an enormous mandate, off the ballot paper by legal means risks a lasting division in the party.
"It is time for everyone to commit to a democratic and dignified procedure as the only way to avert such a disaster for working people."
Mr Watson pulled the plug on peace talks with the trade unions aimed at breaking the deadlock between Mr Corbyn and his MPs because "there is no realistic prospect of reaching a compromise" while the leader remained determined to stay in place.
Ms Eagle thanked Mr Watson, Parliamentary Labour Party chairman John Cryer, chief whip Rosie Winterton and the union movement for trying "to find a solution to the impasse Labour faces with a leader who has failed to fulfil his first and foremost duty, that is to lead an organised and effective Parliamentary Labour Party that can both hold the Government to account and demonstrate we are ready to form a government in the event of a general election".
She added: "On Monday morning I will announce my candidature for leader of the Labour Party. I will explain my vision for the country and the difference a strong Labour Party can make."
Mr Watson announced he had pulled out of the union talks, saying Mr Corbyn's intention to continue "come what may" meant "there is no realistic prospect of reaching a compromise" over his future.
The overwhelming vote of no confidence in Mr Corbyn by the party's MPs showed he had "lost the support of the PLP with little prospect of regaining it", Mr Watson said.
A crisis meeting had been expected to take place in Brighton on Sunday before the giant Unite union's policy conference in a final effort to break the deadlock over Mr Corbyn's future.
The deputy leader said there had been "significant progress" during the discussions with the unions but "since the talks began Jeremy has publicly declared his intention to continue as leader come what may".
"This means there is no realistic prospect of reaching a compromise that satisfies the majority of colleagues in the PLP."
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