OTTAWA - Liberal Leader Michael Ignatieff is coming under intense pressure to reverse a decision that blocks Martin Cauchon's political comeback in the prized Quebec riding of Outremont.

Party insiders say discussions between emissaries for the former justice minister and the leader's office are taking place in a bid to find a "win-win solution" to the controversy.

Ignatieff sparked a backlash within the party when he confirmed Monday that he's decided to appoint a woman as the Liberal candidate in Outremont, a Montreal riding held by Cauchon for 11 years before his retirement from politics in 2004.

His decision appeared to slam the door on Cauchon's hopes of making a political comeback. But in the wake of the backlash, insiders close to Cauchon say the leader's office is now considering a number of other options, including:

- Finding another riding for Nathalie Le Prohon, the businesswoman Ignatieff intends to appoint in Outremont.

- Finding another riding for Cauchon.

- Allowing Liberal grassroots in Outremont to choose their preferred candidate in an open nomination contest.

Ignatieff's spokesperson, Jill Fairbrother, said she was unaware of any discussions and declined further comment.

Denis Coderre, Ignatieff's Quebec lieutenant, told a Montreal radio station Wednesday that Le Prohon will be the candidate in Outremont. But he suggested the party would work with Cauchon if he wants to run elsewhere -- something Cauchon's allies believe is unlikely.

Privately, many Liberals blame Coderre for the creating the controversy and are appealing to Ignatieff to overrule him.

The squabble isn't helpful as Liberals work to recapture Outremont, a longtime Grit fortress that was snagged by New Democrat Thomas Mulcair in a stunning 2007 byelection upset.

Cauchon was the Chretien-era justice minister who spearheaded legislation to legalize same-sex marriage and decriminalize marijuana. He is something of a symbol for progressive Liberals who believe their stance on social justice issues is one of the few things that distinguishes their party from the Harper Conservatives.

Given Cauchon's progressive credentials, MP Bob Rae said "room must be found" for him in the party.

"Martin Cauchon was an outstanding minister of justice and has been a fighter for liberal values all his political life," Rae said.

"If he wants to return to active political life, room must be found for him and his important beliefs and values."

Many Liberal bloggers have echoed those sentiments, albeit in considerably more scathing language.

"Has Iggy swung so far to the right that he's determined to sideswipe any of the progressive people in the party?" demanded one.

"I am absolutely fuming about this decision."