"Without political reform, economic reform cannot succeed and the achievements we have made may be lost," Wen told a press conference, repeating comments made last year that prompted rumours of a top-level split over reform.

However, speaking after the close of the country's annual parliament session, Wen made clear that any transition to electoral politics would be made only under the "leadership of the (Communist) party."

"We must pursue a step by step approach in this process. We must believe that when the people are capable of running village affairs well, they will also be capable of  running a township and a county," he said.

"That will be a gradual process."

Wen made similar comments promoting political reform last August during a visit to the southern city of Shenzhen and in a subsequent interview with CNN.

The remarks sparked speculation of a divide between him and President Hu Jintao, who later made more tepid comments on reform.

However, political analysts have subsequently said Wen had actually intimated nothing significant in August, instead paying the usual lip service to reform and democracy favoured by the Communist Party.

The ruling communists maintain an iron grip on political power and go to great lengths to crush challenges to their rule.

China allows direct elections for village leaders across the country but the process is tightly controlled by local Communist Party leaders.

China's parliamentary chief Wu Bangguo, who is officially number two in the country's hierarchy, outranking Wen, last week ruled out any shift to multi-party democracy.

In a speech to the National People's Congress, Wu said abandoning the current Communist Party dominated system could cause the country to "fall into the abyss of civil strife."