Deputy Labour leader Harriet Harman raised a number of issues with the proposals, but said the royal charter framework would form the basis of cross-party talks scheduled for Thursday.

BBC: Parties say Tory post-Leveson plan 'basis for talks'

Mr. Harman has interviewed a number of candidates including former New York Observer editor Peter Kaplan , people familiar with the situation said.

WSJ: Daily Beast Withdraws From Newsweek Talks

David Heath - Ms Harman's opposite number in the Lib Dems - asked that Justice Secretary Jack Straw be asked to address the debate in Westminster Hall, but Ms Harman suggested it might be upgraded and held in the Commons chamber.

BBC: Commons in court gagging warning

Ms Harman has also written to a number of leading broadcasters about the issue.

BBC: Harriet Harman

It sounds like Barry Diller did a better job selling himself on the idea of a Daily Beast-Newsweek merger than he did selling his opposite number, Newsweek owner Sidney Harman.

FORBES: Barry Diller Has Caught the Print Bug

To complicate matters further, there have been reports of tension between Harriet Harman, the social-security minister, and Frank Field, her number two, whose brief is welfare reform.

ECONOMIST: Welfare reform