Blair had tasked officials to research the extent of Saddam's wealth, estimated at between two billion dollars (1.86 billion euros) and 20 billion dollars, the premier's spokesman said in a press briefing.

The officials told Blair that even if Saddam's fortune was at the lower end of the estimated range it would be the equivalent of three percent of Iraq's gross domestic product (GDP) in 2002.

Downing Street believes that Saddam had built 50 palaces and luxury residences since the end of the 1991 Gulf War, and had around 100 in all -- estimated to have cost two billion dollars.

Blair's spokesman said: "Saddam kept his people poor while making himself rich."

After the fall of downtown Baghdad earlier this week and the crumbling of his regime, Saddam is the subject of a huge manhunt by US-led forces. It is not clear if he is alive or dead.

Blair's spokesman said that following a meeting with US Treasury Secretary John Snow last month, British Chancellor Gordon Brown had signalled Britain's determination to track down and freeze the regime's funds.

SPACE.WIRE