The Labor Party opposition still holds a clear lead over the ruling coalition in the latest Newspoll, but the government's improved performance relieves intense pressure on Howard to quit or be dumped to revive his party's election chances.

Howard suffered his worst period in more than 11 years of government in recent weeks after members of his Liberal Party toyed with ousting him before the elections. He vowed to stay on, and lawmakers fell into line behind him.

The Newspoll published Tuesday in The Australian newspaper found that the center-left Labor Party's lead over the ruling center-right coalition has narrowed to 55-45 from 59-41 two weeks earlier.

Howard told government colleagues at a regular Parliament House meeting Tuesday that they could win the next election.

"The prime minister offered no analysis of the polls except to say that we are behind and we do have a tough fight," a lawmaker who was at the meeting told reporters at an official briefing on the customary condition of anonymity.

"We can win this election," the lawmaker quoted Howard as saying.

Labor Party leader Kevin Rudd told colleagues Tuesday he expected the gap between the parties would narrow as the government stepped up its political advertising campaign.

The earlier Newspoll, and similar showings in other recent polls, was an embarrassment for Howard as he hosted world leaders in Sydney for the Asia Pacific Economic Cooperation summit.

It also caused near-panic among some government lawmakers who fear Howard cannot win elections due by Jan. 19. Howard has said they will be held by early December.

Howard, Australia's second-longest serving prime minister, responded to the earlier poll, and pressure from within his government to retire, by announcing last week that he will relinquish power to Liberal Party deputy Peter Costello sometime in the next term.

Howard, 68, who first came to power in 1996, is seeking a fifth term as national leader.

The Newspoll was based on a random nationwide telephone survey of 1,124 voters at the weekend. It has a 3 percentage point margin of error.

It supports the majority of poll findings this year that suggest Labor is headed for a landslide victory.

Newspoll chief executive Martin O'Shannessy said past election campaigns suggest Labor's winning margin would narrow further as the election draws nearer.

"We are seeing a relatively volatile electorate at the moment," O'Shannessy told Australian Broadcasting Corp. radio.

Newspoll is regarded as one of Australia's most credible election indicators.

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