Culture Secretary Jeremy Hunt said that he intends to refer News Corporation's bid for full control of BSkyB to the Competition Commission.
Mr Hunt said the merger may operate against the public interest in media plurality, but added that he would first consider undertakings from News Corp before confirming the reference to the Commission.
A report by media watchdog Ofcom previously recommended that the proposed deal should be investigated further by the Commission.
Rupert Murdoch's News Corp - which also owns papers including The Sun and The Times - made an approach in June to buy the 61% of BSkyB it does not already own, but Business Secretary Vince Cable stepped in to refer the deal to Ofcom on public interest grounds.
News Corp has told Mr Hunt it wishes him to consider special "undertakings in lieu", which it hopes will allay his fears and prevent him from referring the matter to the Commission.
Recent media reports have suggested that News Corp has told the Government it might be prepared to make concessions to avoid a lengthy consultation, with separating Sky News from BSkyB one option said to be under review.
Mr Hunt said: "News Corporation says that it wishes me to consider undertakings in lieu which it contends could sufficiently alleviate the concerns I have such that I should accept the undertakings instead of making a reference."
Mr Hunt has requested that the Office of Fair Trading is involved in the process. If the undertakings are accepted, a 15-day consultation period will commence when parties will be able to express their views.
Business Secretary Vince Cable, who was stripped of media regulatory powers after telling undercover reporters he was "at war" with Mr Murdoch, said he was confident Mr Hunt would follow due process.
Mr Cable told the BBC Radio 4 Today programme: "I was dealing with that issue, I no longer am. It's been handed over to one of my colleagues and I have complete confidence he's going to deal with this in accordance with due process. It's not helpful or appropriate for me to charge into the controversy."
Culture Secretary Jeremy Hunt said that he intends to refer News Corporation's bid for full control of BSkyB to the Competition Commission.
Mr Hunt said the merger may operate against the public interest in media plurality, but added that he would first consider undertakings from News Corp before confirming the reference to the Commission.
A report by media watchdog Ofcom previously recommended that the proposed deal should be investigated further by the Commission.
Rupert Murdoch's News Corp - which also owns papers including The Sun and The Times - made an approach in June to buy the 61% of BSkyB it does not already own, but Business Secretary Vince Cable stepped in to refer the deal to Ofcom on public interest grounds.
News Corp has told Mr Hunt it wishes him to consider special "undertakings in lieu", which it hopes will allay his fears and prevent him from referring the matter to the Commission.
Recent media reports have suggested that News Corp has told the Government it might be prepared to make concessions to avoid a lengthy consultation, with separating Sky News from BSkyB one option said to be under review.
Mr Hunt said: "News Corporation says that it wishes me to consider undertakings in lieu which it contends could sufficiently alleviate the concerns I have such that I should accept the undertakings instead of making a reference."
Mr Hunt has requested that the Office of Fair Trading is involved in the process. If the undertakings are accepted, a 15-day consultation period will commence when parties will be able to express their views.
Business Secretary Vince Cable, who was stripped of media regulatory powers after telling undercover reporters he was "at war" with Mr Murdoch, said he was confident Mr Hunt would follow due process.
Mr Cable told the BBC Radio 4 Today programme: "I was dealing with that issue, I no longer am. It's been handed over to one of my colleagues and I have complete confidence he's going to deal with this in accordance with due process. It's not helpful or appropriate for me to charge into the controversy."