A millionaire donor and football club owner has offered to support a breakaway of Labour Party MPs following Jeremy Corbyn's election as leader.

Businessman and controversial Hull City owner Assem Allam, who has donated £720,000 to Labour since 2010, said Mr Corbyn could not provide a "strong opposition" and warned the party could face three further election defeats.

He told The Times(£) he would "do anything I can" to support moderate MPs as he warned "Labour under Comrade Corbyn will not make a government".

The report said he would fund moderate figures prepared to launch a centrist party or defect to the Liberal Democrats.

The tycoon refused to name the amount he is willing to contribute but pointed out that he has given Labour half a million pounds this year and £220,000 before that.

"I will do anything I can if I am convinced they can form a strong opposition," he told the newspaper.