"He underestimates the British people. They will see right through any shabby stitch-up.

"If the Labour Government sign up to a new treaty that takes powers from Britain and hands them over to the EU, the British people must have the final say in a referendum."

The Germans believe "as much of the substance of the constitution as possible" should be kept, renamed and put into law.

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Scrapping the name will help Mr Blair reach agreement at what will be his last EU Summit and virtually his last public duty before handing over to Gordon Brown.

But the document makes no reference to one of Mr BlairÕs previous key demands - an Òopt-outÓ from a shift to more joint European decisions affecting criminal law and justice.

A Government spokeswoman welcomed the latest approach to what is being billed as one of the most important EU Summit gatherings for years.

ÒWe fully support the German PresidencyÕs desire to reach agreement on institutional reform, she said.

"We welcome their proposal to return to the classical method of treaty change whereby the existing treaties would be amended.

ÒWe believe an amending treaty should help to make the EU more efficient. The more effectively the EU works together, the more that it is in our national interest as well as our international interests.Ó

The German plan talks about calling the result of any Summit agreement a ÒTreaty on the function of the UnionÓ - removing the federalist implications which have been plaguing efforts to get EU reform plans back on track.

But the report makes clear the EU would still develop a Òsingle legal personalityÓ - a bid to give the EU collectively more weight on the world stage, and fuelling Eurosceptic fears of a further whittling away of national status in Europe.

On the Summit agenda will be the removal from any new reform document of other contentious plans, such as promoting the EU flag and EU anthem.

But the German Presidency expects to see a Òcharter of fundamental rightsÓ given legal force as part of any reform package.

EU foreign ministers meet in Luxembourg on Sunday for a first discussion of the options.

EU leaders gather in Brussels next Thursday, prepared to launch Òan intergovernmental conferenceÓ on the details of a new treaty if they can agree the outline.

Neil OÕBrien, director of the think-tank Open Europe, expressed surprise that a Òsingle legal personalityÓ for the EU was still being considered. It was an unpopular move already flatly rejected by the UK and would not, he predicted, survive in any final deal.

Mr OÕBrien went on: ÒThis memo suggests that the new version of the constitutional treaty is likely to be more radical than expected, and it will strengthen calls for a referendum.Ó