Channel 4 needs between £60 million and £100 million a year in extra support to survive in its existing form, according to Ed Richards, the chief executive of Ofcom, the industry regulator.

Mr Richards said that a solution to Channel 4's problems was a pressing priority as he accepted for the first time that the broadcaster could not maintain its level of spending on programmes.

Speaking to the Royal Television Society yesterday, he said that if no action were taken, “Channel 4 would need to cut its investment in public service content year on year from here to 2012”.

He did not say how the deficit at the state-owned Channel 4 should be rectified, although more detail is expected next Thursday, when the regulator will present the interim conclusions of its review into public service television broadcasting.

However, a final decision lies in the hands of ministers when the review concludes next year. The most likely source of financing is cash from the BBC licence fee, although several options, ranging from free spectrum to direct grants from the taxpayer, are on the table.

Andy Duncan, the chief executive of Channel 4, said: “We're very encouraged that Ofcom now broadly accepts our forecasts on the size and urgency of our funding gap.” The broadcaster believes that it will have to eliminate programmes such as Channel 4 News and Dispatches if it receives no financial help.

Mr Richards also signalled that ITV would benefit from a significant loosening of obligations, as he acknowledged that “ITV plc's financial position is worse now than six months ago”. Between now and 2014, he said, ITV should focus on making British programmes and providing national and regional news. However, he said it was not clear that ITV could afford to deliver regional news after 2014, two years after the digital switchover is completed.

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