Gordon Brown is to consider abolishing the Act that prevents Roman Catholics marrying into the Royal Family or becoming king or queen, in a move that could lead to the disestablishment of the Church of England.The Government signalled that it would look at abolishing the 307-year-old Act of Settlement because it is "antiquated" and discriminates against a section of society.
The commitment came during a Commons debate on proposed constitutional reforms, which would also require the Prime Minister to secure MPs' approval for war.
Under the 1701 Act, monarchs are forbidden to become or marry Catholics.
Traditionally governments have steered clear of the issue, because of the implications for the Church of England and the complexity of the law.
In 2001, Tony Blair, who is now a Roman Catholic, promised to re-examine the legislation but did nothing about it.
Lance Price, a former No 10 spin doctor, claimed in his diaries that Mr Blair did not know the legislation barred Royal family members from marrying Catholics.
However, the law has come under attack in recent years from both church leaders and MPs as an unjustifiable discrimination.
Jim Devine, one of 13 Scottish Labour MPs who are Catholics, raised the Act of Settlement during Tuesday's Commons debate on the proposed constitutional reforms.
He said: "It is legalised sectarianism that has no role in the 21st century."
Justice Secretary Jack Straw, whose brief includes constitutional affairs, replied by prefacing his remarks with the phrase: "I speak on behalf of the Prime Minister."
He continued: "Because of the position Her Majesty occupies as head of the Anglican Church, it is rather more complicated than maybe anticipated.
But we are certainly ready to consider this. I fully understand that to my honourable friend and many on both sides of the House, it is seen as something which is antiquated."
Sources close to Mr Straw said attempted to play down hopes that the controversial law would be repealed.
One said: "We oppose discrimination in all if its forms. But we don't have any plans to legislate in this area at the moment."
Last year it emerged that Peter Phillips, the Queen's eldest grandson and 11th in line to the throne, might have to surrender his place in the succession.
Mr Phillips, the son of the Princes Royal, became engaged to Autumn Kelly, a Canadian management consultant who was baptised a Catholic.
He is due to get married on May 17 in Windsor Castle, which could mean that any changes to the rules could be too late for him to renounce his claim on the throne.
One of the main stumbling blocks to repealing all parts of the Act is that it could in theory mean a Catholic could become head of the Anglican Church.
Experts also say that the Government would have to negotiate with other Commonwealth countries before changing the status quo.
After winning power in Edinburgh last May, Alex Salmond, the Scottish First Minister, promised to campaign for the Act of Settlement's abolition.
Last night he welcomed Mr Straw's comments as a step in the right direction.
He said: "The Act of Settlement is offensive and discriminatory. It is institutional sectarianism and has no place in modern society. It is long past time to consign it to the dustbin of history."
Cardinal Cormac Murphy-O'Connor, Archbishop of Westminster and de facto leader of Catholics in England and Wales added: "The Act of Settlement is clearly discriminatory against Catholics.
"While it is not an immediate issue, this law is something that I am sure will repealed in time."
John Gummer, the Tory MP who proposed a Commons Bill to reform the Act of Succession, added: "The Church of England is in the ridiculous position where it can be headed by a Mormon but not a Catholic, the largest church in Christendom.
"It does seem very odd that we believe in nondiscrimination about anything else but we don't believe that it is sensible as far as Catholics are concerned."
However Ann Widdecombe, the former Conservative MP and leading Catholic, said: "This proposal is a can of worms. It won't protect the position of the established Church. If we repeal the Act of Settlement it will sound the death knell of the established Church.
"The Monarch is the Supreme Governor of the Church of England - therefore the Monarch must be an Anglican and defender of the Anglican faith. We need to step carefully and think what the downsides might be [of any change]."
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