GORDON Matheson said he is still focussed on becoming a MSP despite losing out in his Labour Party deputy leadership bid.

The Glasgow City Council leader came second to Fife MSP, Alex Rowley, in a close three-way contest, with North East MSP Richard Baker, coming third.

Had Mr Matheson won he would have been guaranteed first place on the Glasgow list and pretty much assured of a seat at Holyrood in 2016.

He now has to battle it out with current list MSPs Hanzala Malik, Anne McTaggart and Drew Smith as well as potentially other MSPs worried they will lose their constituency seat and any others looking to be elected to the Scottish Parliament.

Mr Matheson said his ambitions have not changed following the deputy leadership poll in which he got 44.5 per cent of the vote.

He said: “It wasn’t to be at this time. To have come a close second is a very credible result and I thank everyone from across the country who voted for me.

“I congratulate Kezia and Alex on their victories and I will support our new leadership in every way I can.

“At a personal level, I made clear weeks ago that win or lose I am ready to move on to the next phase of my career. That is still my position.”

Mr Matheson had intended to remain as council leader until May 2016 but is expected to face a leadership challenge if he does not stand down sooner to make way for a new leader.

Speculation is mounting he could face an open challenge to his leadership as early as this week now the party election is over.

Former MSP Frank McAveety, who is also a former council leader, is expected to contest the leadership when Mr Matheson announces he will step down.

Other contenders could include Stephen Curran, executive member for education. None has yet stated publicly they want the job.

Mr Matheson said the new Scottish Labour leadership team has his full backing and new leader Kezia Dugdale must be supported to change the party.

He said: “Kezia needs to be given a number of years to turn around the party’s fortunes.”

He defended his decision to stand for deputy leader and said that local government needs more powers from the Scottish Government.

He said: “I feel proud that at a difficult time for Labour I stepped forward and fought what is widely regarded as a strong, focused and energetic campaign.

“I am the first councillor ever to have stood for deputy leader and I hope this will encourage others to follow suit at future leadership elections.

“The key message of my campaign holds true, Scotland is increasingly centralised and that holds the country back.

“Holyrood needs to give back powers and resources away to local government, city regions and communities.”

A source close to Matheson said: "Gordon announced weeks ago that whether or not he won the deputy leadership he believes the time is right to move on to the next phase of his career.

"He will ensure that the timing of his departure allows for an orderly transition in the interested of the city and the Labour group and will give the new leader plenty of time to make their mark before the next council elections in 2017."