Dyke to be ITV head?

Greg Dyke has been in talks with ITV to take over as chief executive, it emerged today.

The former BBC director-general, who was forced out of his job in January after the Hutton Report, is believed to have had a two-hour meeting with chairman Sir Peter Burt with a view to joining the rival network.

The discussions are said to have "gone well", leading to speculation that Mr Dyke is being lined up as a possible replacement for Charles Allen, who has endured a turbulent year in charge.

The move would be seen as a major coup for ITV and a good opportunity for 56-year-old Mr Dyke to exact revenge on Mr Allen, who replaced him as chief executive of London Weekend Television when Granada took it over in 1993.

Mr Dyke is believed to have met with Sir Peter before he went on holiday for Easter.

He is regarded as an ideal successor by anxious investors who have voiced concern at the plummeting ITV share price. Since the February merger between Granada and Carlton - to create ITV plc - it has slipped from 148p to a low of 122p.

An ITV source said: "Greg would certainly hot-wire the share price. People don't think Charles has a strategy for growth. All he seems able to do is cut." Another added: "It would be the ultimate triumph for Greg to foist out Allen. With his experience, there is no way ITV's investors wouldn't be looking at him. He's inspired the BBC and has made savings there too."

Mr Dyke resigned after Lord Hutton's report into the death of weapons expert Dr David Kelly which was highly critical of the BBC. His resignation sparked mass walkouts by staff.