The Prime Minister decided to take the biggest gamble of his political career because he could have been FINISHED by the end of the month.
And Mr Mandelson agreed to return because he knew if Brown was deposed David Cameron would be the next Prime Minister.
Mr Brown's aides warned him Jack Straw, John Hutton, Tessa Jowell, James Purnell and Hazel Blears were all so fed up they were set to resign.
All were strong supporters of Tony Blair and believed the government had collapsed since the ex-PM retired.
Mr Brown was also told his plan to bring back arch-supporter Nick Brown as chief whip would be the final straw.
So he hatched a plan to bind them in by bringing back the ultimate Tony Blair supporter.
A Cabinet Minister told the News of the World: "It was easy to see at the Labour Party conference that several Cabinet colleagues had given Gordon a definite deadline.
"There was no plot, but they all felt the same and a reshuffle could have been a dangerous moment for Gordon.
"If he had just promoted his bully boys they would have walked out, no question. Now things are very different."
Education Secretary Ed Balls admitted: "Of course it's a risk. But at the same time, it's also a great opportunity. Gordon Brown looked at this carefully and he decided it was worth that risk. Peter has got great experience."
A leading Brown aide said the PM and Mandy struck a deal because they knew it was finally time to bury the hatchet.
He explained: "When you are 10 per cent ahead in the polls you can afford to carry on a feud, but the prospect of a David Cameron government meant both sides had to give a little.
"Peter had started to lend a little bit of support in the summer and Gordon was grateful for that.
"They had been talking about him coming back after the next election, and talking about medium term strategy stuff but we know we have a political problem and a financial crisis so there was no point in wasting time."
To make room for Mr Mandelson, John Hutton was told on Thursday he would be moving from his post as Business Secretary.
To avoid a resignation, Mr Hutton was asked which job he wanted, and was promptly lined up for Defence.
Mr Brown strengthened the lower ranks of his government with a rash of new appointments. Oldham MP Phil Woolas was given the key post of Immigration Minister.
Highly-rated Muslim MP Sadiq Khan will be Justice Minister. Vernon Coaker becomes Police Minister and Chris Bryant will be Deputy Leader of the Commons.
Sion Simon will be Universities Minister and Mr Brown's former private aide Ian Austin becomes a whip as does John Spellar, one of Labour's most respected backbenchers.
In a key move Mr Brown has also reached out to the Party's left wingers. Jon Cruddas was offered a post as Education Minister but turned it down to concentrate on campaigning against the BNP.
However, Jon Trickett becomes Mr Brown's Parliamentary Private Secretary-his eyes and ears in the Commons.
Trickett last month warned Labour had abandoned the working class and also voted against the Iraq War.
Others were less lucky. Popular Transport Minister Tom Harris was sacked. He said: "It's been more successful as a reshuffle for the Government than for me."
This article has 2 comments
Excellent news... the slurping madman is now bribing his "colleagues" to pretend they like him.
Is there really any more evidence needed for why a change of government is needed immediately?
Brown you useless lump, do the first honest thing in 11 years and call a general election!
By SteveC. Posted October 5 2008 at 12:26 PM.
Bringing Mandy back is the final nail in New Labours and Bottler Browns coffin.
By fedupwithbeingtakenforaride. Posted October 5 2008 at 10:36 AM.