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Londoners will be able to vote in American presidential-style primaries to choose Labour's next candidate for mayor.
Party members and people who register as Labour supporters can have their say.
The change announced today by Ed Miliband reduces the impact of trade unions on the selection of candidates.
The details now from our Political Correspondent Simon Harris
Labour's former deputy leader John Prescott has welcomed Ed Miliband's proposals to change the party's relationship with the trade unions.
Mr Prescott compared is proposals to the dramatic moves to introduce "one-member one-vote" (Omov) elections for the party leader under John Smith and end the Clause 4 commitment to nationalisation under Mr Blair.
Great speech from Ed. Change is always controversial, like OMOV was 20 years ago & Clause 4 in 94. But let's have the debate! #BoldLabour
Labour leader Ed Miliband announced he has appointed former Labour general secretary and union official Lord (Ray) Collins of Highbury to lead work on the introduction of a new system, which will consider an open primary process for the London mayoral candidate selection.
Lord Collins will also consider how the proposals could be spread to other parts of the country.
- Under Mr Miliband's proposals, any Londoner registering as a Labour supporter will be eligible to vote in the ballot to choose a candidate to replace Boris Johnson in 2016.
- A new code of conduct will be drawn up to cover all applicants to be Labour parliamentary candidates.
Wannabe London mayor Christian Wolmar reckons Labour's new candidate selection rules great news for candidates like him. @itvlondon
Ed Miliband has set out a series of reforms designed to reshape Labour's relationship with the trade unions and end the "machine politics" behind the alleged ballot-rigging controversy in Falkirk.
In changes which could provoke a major clash with the union bosses who bankroll his party, Mr Miliband said he would reform the system of affiliating union members to Labour.
He also said he would introduce a code of conduct for would-be election candidates and introduce open primary elections for Labour's next candidate for London Mayor.
US-style primaries prompt 'valuable debate' and make 'great strides in engaging the electorate, the shadow justice secretary said today, as Labour announced a new code of conduct over mayoral candidate selection after the Falkirk row.
Sadiq Khan wrote in the Evening Standard today: "Primaries help make politics exciting: for some time I’ve backed calls for such a process in London. So I support Ed Miliband’s landmark announcement today that Labour will use a primary to pick our candidate for London Mayor in 2016.
" All Londoners of voting age who are either a Labour Party member or have registered as a supporter will have a say in who becomes Labour’s candidate".
"We will have a new code of conduct for those seeking parliamentary selection." - EM #betterpolitics
"We will also agree new spending limits for Parliamentary selections to include for the first time spending by outside organisations." - EM
"These changes are about making it possible for us to change Britain for the better." - EM #betterpolitics
Ed Miliband will today unveil his plans to change the link between the trade union movement and the Labour party, and a reform of the process through which party candidates are selected. In a speech this morning in London, he will propose the following:
- Labour's next candidate for mayor of London to be picked through a system of US-style primaries.
- There is a possibility they could be extended to the selection of parliamentary candidates where the local constituency party is weak.
- There will also be spending caps in selection contests for Parliament and the European Parliament covering both would-be candidates and any organisation backing them.
- A new code of conduct will be drawn up for those seeking parliamentary selection, with the prospect of disqualification if they breach the rules.
The Conservatives say a tweet from a hopeful Prospective Parliamentary Candidate is behind their calls for a Metropolitan Police investigation into Labour's candidate selection in Lewisham.
Mandy Richards, who is hoping to represent Labour in Hornsey and Wood Green, tweeted about "orchestration" from Unite in Hornsey and Lewisham.
Conservative vice-Chairman Bob Neill Falkirk has written to the Met Commissioner, Sir Bernard Hogan-Howe, saying that the furore over Falkirk was "the tip of the iceberg".
In that case, Labour handed over evidence to police in Scotland about claims that the Unite union tried to fix the result of a candidate selection in Falkirk by packing the constituency with members, whose subscriptions it paid.
A Unite spokesman said: "The Conservatives are wasting police time and trying to engage the police in a disgraceful political witch hunt. We strenuously reject any suggestion of criminality or that we have broken Labour Party rules.
"Using the police to score political points and diverting their attentions away from making our communities safer is obscene. The Tories' smear tactics are designed to scare ordinary people away from engaging in politics and ensure it becomes the preserve of an Eton-educated elite."
Conservatives have asked the Met Police to investigate Labour's candidate selection process in two more constituencies.Tory vice-chairman Bob Neill wrote to Commissioner Sir Bernard Hogan-Howe asking him to look into allegations of possible fraud relating to Ilford North and Lewisham Deptford.
The call comes after Labour handed over evidence to police in Scotland about claims that the Unite union tried to fix the result of a candidate selection in Falkirk by packing the constituency with members, whose subscriptions it paid.
Mr Neill described Falkirk as "the tip of the iceberg", noting that a leaked Unite document suggested the union was getting involved in the choice of a candidate for the 2015 general election in 41 seats across the country.
He said: "Unite themselves admit they are targeting at least another 40 Labour Party parliamentary selections for similar treatment. Senior Labour Party sources have also confessed that the problems go wider than just Falkirk."
He cited reports that in Ilford North Unite were offering their members free Labour Party membership for attending a meeting with general secretary Len McCluskey. And he quoted claims from a Labour London activist that the union was "bankrolling" a number of campaigns, including in Lewisham Deptford