Final touches were last night being made to a proposal, understood to see Sky News hived off into an independent trust that News Corp will agree to fund with tens of millions of pounds a year in the long-term.
Essentially, the arrangement will see Mr Murdoch's News Corporation cede control of Sky News.
Government sources said yesterday that Jeremy Hunt, the culture secretary, has not yet made his decision, as he is waiting to receive the submissions from the OFT and Ofcom.
After weeks of negotiations, News Corp has agreed the key details of the remedy with Ofcom and the OFT. The proposals will be sent to Mr Hunt shortly. If the proposed remedy receives Mr Hunt's approval, he will immediately begin a public 15-day consultation process.
News Corporation has been meeting with officials from the OFT in an attempt to assure Ofcom, the broadcasting regulator, that its full ownership of BSkyB would not reduce media diversity in the UK.
News Corp, the owner of The Times, The Sun, The Wall Street Journal and 20th Century Fox, has been attempting to buy the rest of BSkyB.
The media giant made a 700p-a-share, £7.8bn bid for the remaining shares in June, which was rejected. A deal valuing BSkyB shares at somewhere between 800p and 850p a share is expected.
A full-blown sale of Sky News has been viewed as difficult, as the satellite channel is losing more than £30m a year.
Many opponents have said the remedies proposed in recent weeks were not sufficient. They have urged Mr Hunt to recommend a full investigation by the Competition Commission.
Discussions between News Corp and Mr Hunt were aimed at removing the likelihood of a lengthy review process by the Competition Commission.
A potential review could take more than six months, in which time the price of BSkyB could significantly increase.
Rivals, including the owners of The Daily Telegraph, have raised concerns that the merger would give Mr Murdoch too much influence over public opinion.
Opinion on this is split. Media analyst Claire Enders, once a vociferous and influential critic, believes it is the best that could be hoped for within the current framework. That is a mighty condemnation of our rules. By 2015, BSkyB will account for half of UK TV revenues, spending little on UK content while controlling swaths of sports, film and archive rights. The US company deciding not to invest here will be the first of many. Capitalism delivers best when it is open, competitive and the powerful companies have to confront hungry challengers (Rupert Murdoch was himself a hungry young man 50 years ago). It becomes sclerotic and sleazy when it is run by insiders, monopolies and political fixes.
Obviously this is just my biased view.-OP
Mods, I think this is ONTD relevant considering the debate about sources and media bias which is relevant even in relation to celeb gossip. tyfyt.