Across the conspiratorial corridors of Westminster yesterday huddles formed and conversations lowered into whispers. Telephones rang across MPs' offices as supporters of the two main likely contenders for the Liberal leadership - Nick Clegg and Chris Huhne - sounded out colleagues.

Mr Clegg, 40, MP for Sheffield Hallam and the party's home affairs spokesman, who is the bookies' favourite, said he wanted to talk to his wife Miriam, friends and colleagues before making a decision. "It's a big decision for myself. It's been very sudden. I'd like to talk to close friends."

Asked if he would announce his decision soon, Mr Clegg replied: "It will be as soon as I have made up my mind."

Last night, it was thought the former MEP was gaining a majority of support at Westminster. One supporter, Taunton MP Jeremy Browne, who ran Sir Menzies Campbell's leadership campaign last year and who is now Mr Clegg's deputy on the home affairs brief, said: "He is a tremendously exciting, ambitious, charismatic politician. He is a man of genuine substance and deep-held liberal beliefs."

Wrangling started early with one Clegg ally claiming Mr Huhne did not have the appeal to lead the party out of the wilderness. "Chris can only talk to the 11% who say they will vote for the party at the moment. Nick talks to the other 29% of potential supporters."

Elsewhere, Mr Huhne, 53, the MP for Eastleigh in Hampshire and the party's environment spokesman, refused to be drawn on his plans but sources suggested he would launch his campaign today in London.

Another possible contender from the left of the party is Steve Webb, 42, the MP in charge of producing the party's next General Election manifesto, who made clear he was considering a bid but would make a decision "probably later in the week".

He insisted the contest would be "about the future direction of the party". The MP for Northavon in Bristol told the BBC: "I don't expect an imminent list of names, but clearly, the way our party works, I imagine we will have three or four names. Hopefully, it won't just focus on personalities, it will be about policies - many of which we agree on but there are differences of emphasis - and working out who is best to communicate them and take them forward."

He added that installing a new leader would "give us a firm bedrock to re-establish ourselves in British politics at a much higher level than we are at the moment", he said.

Vince Cable, the acting LibDem leader, warned frontrunners Mr Clegg and Mr Huhne that the contest was not a two-horse race. Refusing to rule out standing himself, he said: "I would not put too much money on early favourites."

Allies of Susan Kramer, 57, who represents Richmond Park in London, indicated she was considering standing as she believed there was room for a female candidate.

Ed Davey, Sir Menzies's ex-chief of staff, was also considering a challenge but feared the contest would clash with the birth of his first child.

As with the leadership contest in 2006, this one will be run using the single transferable vote system, meaning there could be several rounds of voting as candidates are knocked out until one achieves more than 50% of the ballot.

Contenders need to secure the support of 10% of the party's 62 MPs and 200 party members from not fewer than 20 constituencies.

Today, as Sir Menzies licks his wounds, he will have one consolation: he will not have to go through the ordeal of Prime Minister's Questions. That role for the foreseeable future will fall to Mr Cable.