The former US Vice-President Joe Biden has launched a Political Action Committee (PAC) in a sign that the veteran politician may run against Donald Trump for the presidency in 2020.

The former Democratic senator for Delaware unveiled the PAC named "American Possibilities", according to the New York Times. A PAC raises money from members and donations to fund political campaigns.

Biden served eight years as vice president under Barack Obama. He will use the PAC as a platform to help ahead of the 2018 midterm elections as well as the two governor races taking place in November.

Greg Shultz who worked alongside both Biden and Obama in the 2008 and 2012 campaigns is poised to lead the group when it is unveiled on 1 June.

Senior Democratic strategist, Stephanie Cutter said: "Biden has a lot of support out there, and this gives him a way to grow that support while also helping Democrats win and build the party."

The announcement of a PAC has reignited the rumours that Biden may run for president in 2020.

Biden had considered running in 2016 but decided against it, saying that he was "out of time" to mount a winning campaign.

The decision not to run came just months after the death of his eldest son Beau who died of brain cancer. He eventually gave his support to Hillary Clinton.

Similar PACs have been announced by other politicians, including Hillary Clinton, who aims to help new politicians and their campaigns, and Donald Trump, whose 2020 run has also started gaining momentum.