Labour MP Sharon Hodgson last night admitted she was "devastated" after losing out to veteran David Clelland in the battle for the new Gateshead seat at the next general election.

Boundary changes meant Tyne Bridge MP Mr Clelland and Mrs Hodgson, of neighbouring Gateshead East and Washington West, were left to fight it out for the nomination in the same constituency.

A poll on Saturday among party members saw former Gateshead Council leader Mr Clelland triumph by 138 votes to 117.

It effectively guarantees the 63-year-old, an MP since 1985, another term in Parliament, with Gateshead unlikely to face any serious challenge from opposition parties.

Mrs Hodgson, who was first elected to Parliament last year, put her defeat down to being the "new kid on the block".

She opted not to comment yesterday on the possibility of switching her attention to Sunderland after Sunderland North MP Bill Etherington announced his retirement. Mr Clelland appeared to encourage her to fight for a seat in the city, which she has previously indicated could be an alternative to allow her to stay in the House of Commons.

Gateshead-born Mrs Hodgson, 40, said yesterday: "I'm absolutely devastated, because being the MP for Gateshead, my home town, meant a lot to me.

"I was pipped at the post in a very close-run race. We were neck and neck throughout the campaign, but in the end I was the new kid on the block."

She said she would spend Christmas with her family before deciding on future options, adding: "I am a woman of faith and believe everything happens for a reason, so I hope there's something else on the horizon."

Former Government whip Mr Clelland said: "I have Gateshead running through my veins, so I'm delighted."

Asked about the possibility of Mrs Hodgson fighting the new Washington and Sunderland West seat, he said: "There's no reason why not - there's a vacant seat there.

"It's not for me to tell Sharon what to do, but as she has a connection with Sunderland, it would make sense for her to do so."

That seat has also been created by the boundary review, which has reorganised the three Sunderland seats.

Sitting MPs Chris Mullin and Fraser Kemp are expected to take the other two, with the city's final candidate likely to be chosen from an all-women shortlist.

Another slim hope for Mrs Hodgson is the possibility of Gordon Brown calling a snap general election before the boundary changes become law, if, as expected, he succeeds Tony Blair as Labour leader later this year.