David Cameron has instructed the Cabinet Secretary to get to the bottom of "who said what to whom" in the spat between Theresa May and Michael Gove.
Sir Jeremy Heywood is now expected to interview both ministers in an attempt to "establish the facts" behind the row over how the Government tackles Islamic fundamentalism.
Mr Gove accused the Home Office of failing to adequately deal with extremism, particularly in relation to the alleged infiltration by hardline Islamists of Birmingham schools.
The Home Secretary responded by leaking a letter she had written to Mr Gove questioning why his Education Department had not responded to claims of an Islamist takeover of the city's schools in 2010, when they had been raised.
Sir Jeremy Heywood will help to establish the facts of the Gove/May spatThe row between the two threatened to overshadow the Queen's Speech on Wednesday as it played out overnight on Tuesday and is said to have angered the Prime Minister.
"The Prime Minister has asked Downing Street, and that includes the Cabinet Secretary, to establish the facts - who said what to whom - in the arguments we have seen over the past few days", Chancellor George Osborne told Radio 4's Today programme.
Mr Gove believes extremism can be the gateway to terrorism and has made it clear he feels the Home Office fails to deal with the problem early enough.
His views were "leaked" to The Times newspaper and on Tuesday night Mrs May's camp responded by counter-leaking her letter.
21 Birmingham schools are being investigated by OfstedIt is expected that a tweet in which the link to her letter on the Home Office website was contained will be considered as part of the inquiry into how events unfolded.
On Wednesday, Mr Gove and Mrs May issued three statements insisting they worked well together.
Earlier this week, Sky News revealed one of the schools had been found to be "inadequate" after failing to protect pupils from extremism.
Inspectors found: "Students have a scant understanding of other religions, the focus is primarily on Islam."
Some 21 schools in Birmingham have been the subject of an Ofsted investigation after a letter, which is widely believed to be a hoax, referred to an alleged plot by hardline Muslims to seize control of governing boards in the city.
Ofsted will publish the findings of its investigation into the Birmingham schools next week, while retired senior police officer Peter Clarke, who is spearheading a full inquiry into the allegations, is expected to report back in July.
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