Alexander Lebedev, the former KGB officer and Russian oligarch, is expected to pay £1 for the London Evening Standard, the price of just two copies.

The token price reflects the newspaper’s loss-making performance and the owner’s eagerness to rid himself of a title that has been in his family for three decades. Negotiations between Viscount Rothermere’s Daily Mail and General Trust (DMGT) and Mr Lebedev remained on track yesterday despite claims that Lord Rothermere was unhappy that Mr Lebedev’s camp had leaked details.

DMGT said that it was willing to consider other bidders, although time is short; the sale is expected to be completed on Monday. At lunchtime yesterday DMGT insiders accused Mr Lebedev of mounting a media offensive in a “clumsy attempt to push the deal through”. By early evening the tone had changed.

A spokesman for the company said: “We have entered into discussions with Alexander Lebedev regarding a sale of the Evening Standard. No agreement has yet been reached.”

The Standard is the sole survivor of 14 paid-for London evening newspapers, but now loses about £10 million a year, hurt by falling circulation and new competition from freesheets, including thelondonpaper, owned by News International, parent company of The Times.

Lord Rothermere used to be managing director of the Standard in the late 1990s, but after the death of his father in 1998, at just 30 and after only a year in the role, he stepped up to become chairman of the company.

He has grown weary of the struggling title; selling to Mr Lebedev would save him the losses, while ensuring that his company still receives income from it for printing and other services.

The Russian maintained a low profile yesterday, and his spokesman tried to deny the existence of the talks. Artyom Artyomov, as quoted by Interfax news agency, said that Western reports of the tycoon’s plan to buy the paper were “incorrect”.

But he added: “The businessman deems it extremely important to provide financial protection to free and independent mass media in Russia and abroad. He could buy an influential foreign edition this year.”

Lord Rothermere wants guarantees that Mr Lebedev is serious about supporting the paper, and wants agreement on who will pay for any redundancies. Veronica Wadley, the Editor, is expected to make way for a Lebedev appointment, with Geordie Greig, Editor of Tatler, the favourite.

Mr Greig is close to Mr Lebedev’s son, Evgeny, who is a regular face on London’s social scene. The young man appeared yesterday to be preparing for a takeover, wearing his trademark dark glasses to meet advisers.

Evgeny Lebedev is the co-administrator of the Raisa Gorbachev Foundation, named after the wife of the former Soviet leader Mikhail Gorbachev. She died of leukaemia.

Speculation also mounted that Mr Lebedev’s move could be a prelude to a series of bids for newspapers.

The Russian is a friend of Simon Kelner, managing director of The Independent and Independent on Sunday, prompting talk that he could be keen to acquire the titles.

Friends of Mr Kelner denied rumours of an informal approach.

Britain’s most famous KGB defector, Oleg Gordievsky, told The Times yesterday that he had never heard of Alexander Lebedev as a member of the Russian intelligence service.

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