Australia's competition watchdog says it will not oppose a bid by Rupert Murdoch's News Corporation to take over James Packer's Consolidated Media Holdings.

News Corp's Australian subsidiary News Limited has offered to buy Consolidated Media, which is controlled by Mr Packer, for $2 billion.

The move would double News Limited's stake in dominant pay-TV operator Foxtel.

The Australian Competition and Consumer Commission (ACCC) says the takeover is unlikely to substantially reduce competition.

It is still assessing a proposal by the Kerry Stokes-controlled Seven Group to take over Consolidated Media.