Charles Allen’s position as ITV’s chief executive was increasingly precarious last night, amid growing expectation that he was in the final stages of negotiating his departure from the commercial broadcaster.

The chief executive faces a crunch board meeting at the beginning of next week — after which ITV is expected to confirm his departure in the wake of intense pressure from the broadcaster’s shareholders.

Ewan Sterling, from Standard Life Investments, told the BBC’s Ten O’Clock News that Allen had presided over a damaging loss of viewers at its core channel. He said that “a sense of greater imagination could improve the financial performance” at the broadcaster.

ITV has endured nearly a fortnight of feverish speculation about Mr Allen’s future, which both he and the company have conspicuously failed to quash. Clarity is not expected to emerge until ITV unveils its interim results on August 9.

For the moment, the chief executive is telling insiders that “he will continue to run the company as long I want to and if the board want me to”.

Unveiling Mr Allen’s exit next week would give the board breathing space amid a decline in audience share and a collapse in advertising. Earlier this year ITV saw off a Greg Dyke-led venture capital backed bid at 130p a share. While some of the bidders remain interested in a new move, under Takeover Panel rules they are prevented from doing so until the beginning of October.

There was speculation that Mr Dyke was trying to enlist Stephen Carter, the outgoing Ofcom chief executive.

Merrill Lynch, the investment bank, has also shown interest in orchestrating a bid, thought to be in conjunction with Roger Parry, the chairman of Johnston Press and Future Publishing.

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