James Murdoch, who heads the newspaper's European operations, says the 168-year-old newspaper will publish its last edition Sunday.
News International says it is shutting down the News of the World tabloid at the center of a phone hacking scandal, reports said on Thursday.
James Murdoch, who heads the newspaper's European operations, says the 168-year-old newspaper will publish its last edition Sunday.
The scandal has cost the paper prestige and advertisers.
The BBC quoted its business editor Robert Peston as saying before the news broke that some of the companies that had been pulling their advertising from the News of the World were shifting it to its sister daily paper, the Sun.
That would suggest that the Sun has not been sullied by the scandal, BBC said.
Justice Secretary Kenneth Clarke told the BBC that ‘all they're going to do is relaunch it.’
There have been rumours that a Sunday edition of the Sun will launched, although News International has declined comment.
The web addresses "TheSunOnSunday.co.uk" and "thesunonsunday.com" were registered two days ago, although it is not known by whom.
James Murdoch's statement referred to "colleagues who will leave the company", which suggests it will not simply relaunch under a different name, the BBC said.
News International has said that 200 people are employed by the News of the World, but has not said how many of them will be made redundant.
Peter Preston, former editor of the Guardian, said it would not be as simple as just relaunching.
"If you just do a seventh day version of what you're doing the rest of the week, it doesn't do as well - it's not what the public want," he told the BBC, stressing that the readership profile of the Sun and the News of the World are not the same.
The News of the World was UK’s best-selling English-language newspaper.
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