Channel 4 and BSkyB are in talks about merging their advertising sales teams in a deal that would produce multimillion-pound savings. Channel 4 believes that an agreement could form part of an alternative package of cost-cutting measures to help to support the broadcaster if its hoped-for tie-up with the BBC fails.

Sky, 39.1 per cent owned by News Corporation, parent company of The Times, is understood to be interested because a combination of the two would be better able to compete with ITV, the market leader, and could provide advertising sales for other channels, such as RTL's Five.

The talks are continuing, although the state-owned Channel 4 is thought to be cooling on the proposal, while Sky is still keen. The level of potential savings has been calculated internally, but no figure has emerged publicly.

However, any synergies achieved would be substantial because, in effect, it would be possible to reduce the combined advertising sales team by about 50 per cent. Together, the two would represent channels with a smaller share of advertising than ITV's 41per cent, so the competition authorities would be unlikely to block a deal.

It is not clear to what extent the Government is involved in the discussions, but it has been suggested there is governmental disquiet that a partial alternative to the preferred Channel 4-BBC tie-up has emerged.

That plan would see Channel 4's digital channels merged with parts of Worldwide, the BBC's commercial arm, to create a publicly owned company with an £800 million turnover. However, the complexity of the deal, which brings together two disparate operations, means that it is not certain to go ahead.

Channel 4 has said repeatedly that it needs about £100 million a year of extra support to ensure that it can maintain its mix of programming. The channel is waiting for ministers to make its fate clear when the Digital Britain White Paper is published next month. Channel 4 is also being pursued by Five, but the broadcaster has repeatedly objected to a merger between the two, Andy Duncan, the chief executive of Channel 4, saying that a full public-private hybrid would be like mixing “oil and water”.

Although ministers are considering a Channel 4-Five merger as an alternative to the BBC deal, Channel 4 has said that it would rather go it alone than be forced into joining forces with Five.

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