Lord Archer has signed a new multi-million pound book deal from his prison cell, after parting company with his old publishers Harper Collins.

The disgraced Conservative peer, currently serving a four-year prison sentence for perjury, has agreed a new three-book deal with Macmillan Publishers thought to be worth about £10m.

His status as a major writer of popular fiction has never been greater

MacMillan

The contract was signed last week and the first novel, Sons Of Fortune, will be published in the UK next year.

Lord Archer was released from his contract with Harper Collins by mutual agreement, after he failed to produce the two novels and volume of short stories which he had intended to write for them.

His agent Jonathan Lloyd said: "Jeffrey is absolutely thrilled with the new deal.

"Sons Of Fortune is near completion and he is very proud of it. He believes it is one of the best works he has ever produced."

Richard Charkin, chief executive of Macmillan, said: "We are delighted to become Jeffrey's publishers.

"His status as a major writer of popular fiction has never been greater and his new novel, Sons Of Fortune, justifies his reputation."

Sons Of Fortune is a political thriller set in the US, focusing on twins who are separated at birth and grow up unaware of each other's existence.

The disgraced peer is thought to be working on his memoirs

Lord Archer, 62, has been working on the novel during his time in prison, and is unlikely to be released in time to promote it - but may be out in time for the paperback edition.

He was sentenced to four years in jail by an Old Bailey judge last July after being found guilty of lying in a previous libel trial against newspapers who had made allegations about his private life.

Lord Archer's previous novels include Not A Penny More, Not A Penny Less, Shall We Tell The President? The Prodigal Daughter, and Kane And Abel.

Although none of his new novels draw upon his experiences behind bars, he is thought to be working on his memoirs, which Macmillan says it expects to publish.