Simon Cowell, the record and TV talent mogul, is in multimillion-pound talks with Sir Philip Green, the retail billionaire and Topshop owner, about forming an international television business.

Sources close to the pair confirmed today they are working on a venture that will devise new programs and hold the rights and content of Mr Cowell's hit shows, Britain's Got Talent,The X-Factor and American Idol.

The new company is intended to give Mr Cowell greater control over his work and earnings and enable him to roll out the formats across the globe.

For Sir Philip the company is expected to create a lucrative merchandising opportunity. He will also provide business advice to Mr Cowell on his television work.

Mr Cowell and Sir Philip are close friends and are often pictured hatching plans over dinner at well-known restaurants.

In recent weeks Sir Philip has been travelling to Los Angeles to advise Mr Cowell on a new contract for American Idol. Mr Cowell's deal with the programme — the most watched on US television with more than 27 million viewers for each episode and annual advertising revenues of about $900 million — expires in May.

The new deal, which could make the talent mogul America's best-paid television star, is expected to be struck through the as-yet unnamed Green/Cowell company.

The move will cement the reputation of Sir Philip, Britain's ninth richest person, as an international businessman and entrepreneur. It follows a successful launch of Topshop, his best-known business, in the United States.

Mr Cowell, who earns an estimated £7 million a year for The X-Factor alone, complained recently that he had taken too much on and that "something has to give".

After a deal a few years ago with Syco, Mr Cowell's existing production organisation, the profits from The X Factor, American Idol and Britain's Got Talent, go to Simon Fuller's 19 Company or Sony.

With the contracts up for renewal Mr Cowell is said to have deemed it the ideal time to proceed with the new venture.

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