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At a regular meeting of Labour peers on Wednesday night there was "a lot of disquiet" expressed about Sir Digby's appointment, BBC Newsnight political editor Michael Crick said.
BBC: NEWS | UK | UK Politics | MPs laugh about 'Comrade Digby'
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Talk of the newspaper selling out its integrity was spurred not only by the supposedly coincidental resignation of the paper's editor, Shelby Coffey, but also by the appointment of a former head of consumer marketing as general manager for news.
ECONOMIST: The press
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Martyn McFadden, editor of Sunderland fanzine A Love Supreme, said the appointment had come as a surprise.
BBC: Exciting times ahead?
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Cameron said he knew that Coulson's appointment would be "controversial" but that the party felt his experience as a tabloid editor meant he was tough enough for the high-pressure role.
CNN: STORY HIGHLIGHTS