Tony Blair [Images] was on Wednesday named as special envoy of the four major powers mediating the Middle East peace shortly after stepping down as Prime Minister of Britain.

As the representative of the Quartet, he is tasked with mobilizing international assistance to the Palestinians, working closely with donors and existing coordination bodies, and help develop governance institutions for a Palestinian State.

A statement on behalf of Quartet, released at the United Nations Headquarters, said he will also help to identify and secure and 'appropriate international' support in addressing, the institutional governance needs of the Palestinian state, focusing as a matter of urgency on the rule of law.

The much anticipated statement came within hours of Blair laying down his office after a decade.

Among other things, Blair will assist in formulating plans to promote Palestinian economic development, including private sector partnerships and building on previously agreed frameworks, especially concerning access and movement.            
He will liaise with other countries in support of the agreed Quartet objectives.

The Quartet, comprising the United States, Russia [Images], European Union and the United Nations, has for years been unsuccessfully trying to find a comprehensive solution to the conflicts in the Middle East and attempting to bring about understanding between Palestinians and Israelis.

But the role envisaged for Blair is much more limited as it is focused on helping Palestinians to rebuild and create institutions which will help in the ultimate establishment of a Palestinian State.

Speaking before Parliament for the last time as prime minister, Blair said a 'solution' to problems in the Middle East was possible but that this would require 'huge intensity and work.'

The absolute priority is to try to give effect to what is now the consensus across the international community -- that the only way of bringing stability and peace to the Middle East is a two-state solution," he said.

Blair's appointment comes at a crucial time when the United States and its western allies are trying to isolate Hamas and prop up the government of Palestinian President Mahmoud Abbas. Hamas, which won power in the general elections, now controls the Gaza strip but Abbas writ runs in the West Bank.

The Western powers do not recognize the Hamas government as it does not recognize Israel.

The former British prime minister, who had been very active in the Middle East peace process, the Quartet said, would bring continuity and intensity of focus to support of the Palestinians, 'within the broader framework' of its efforts to promote an end to the conflict in conformity with the roadmap.

The roadmap envisages simultaneous steps by Israelis and Palestinian leading to establishment of a Palestinian State living side by side with Israel in peace. But so far the continuing conflict has prevented such a proposal from taking a practical shape.

Blair will spend 'significant time' in the region working with the parties and others to help create 'viable and lasting government institutions' representing all Palestinians, a robust economy, and a climate of law and order for the people.

He will be assisted by a small team experts based in Jerusalem.

The Quartet statement noted that recent events in Gaza and the West Bank make it more urgent than ever that 'we advance the search for peace in the Middle East' and reaffirmed its objective to promote an end to the conflict in conformity with the roadmap.

It expressed its intention to redouble its efforts in that regard.

'The urgency of recent events has reinforced the need for the international community, bearing in mind the obligations of the parties, to help Palestinians as they build the institutions and economy of a viable state in Gaza and the West Bank, able to take its place as a peaceful and prosperous partner to Israel and its other neighbours,' it said.