He is coming under intense pressure to draw up new rules for faith-based schools to head off mounting criticism that they increase racial segregation.
The prime minister has already backed the Church of England's plans for a huge increase in the number of its secondary schools. But council leaders are calling for a compromise plan which would mean that Jewish, Christian and Muslim groups could only open new state-funded schools if they agree to embrace pupils from different backgrounds.
The plan, to be unveiled by the leaders of the country's 168 local education authorities today, has already won support from Church of England figures and sectors of the Muslim community.
Minister for school standards Stephen Timms, who will be responsible for steering any resulting legislation through the commons, is to be urged to back the plan. It is designed to take the sting out of heated opposition to the original proposals - backed by the prime minister - for a massive increase in the number of faith-based schools.
The education white paper said any proposal for a new school would have to be advertised so that faith hgroups or private companies could bid to run it. However, trade union leaders and a growing number of Labour MPs say this will lead to greater segregation among children, particularly in inner city areas, which have seen riots in the past year.
Labour council leaders say they have been told privately that Downing Street will listen to opposition to the scheme and that they should 'beef up' their argument. In their submission to the department for educatiuon and skills they will bluntly spell out their concerns.
Local Government Association education chairman Graham Lane said: 'We've toughened up our stance. We are deeply concerned about the development of more faith-based schools.
'We are saying that if you insist on going down this road, you should be blocking proposals for voluntary aided church schools' - which give more control over admissions to the churches and have led to situations where other faith groups are barred from attending.
'Instead, you should adopt a a voluntary controlled approach' - where a proportion of places are allocated to the wider community - 'so that you could have a meeting of cultures in these schools'.
Education secretary Estelle Morris told MPs last week that thousands of Muslim children were being educated in independent schools because their parents wanted a faith-based education.