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Plans to privatise Channel 4 could be dismissed if the broadcaster moves its HQ to Birmingham, according to reports.

It has been rumoured for some time that the channel was being lined up for a move to Birmingham and now government sources have told the Sunday Times that relocating here would mean keeping it in state ownership.

Channel 4 is owned by the Government but generates its revenue from advertising and the move to Birmingham would be funded by a sale of its head office in central London.

The Sunday Times reports that such a move would "make sense for regional regeneration" but the Channel countered by saying it already makes a significant contribution to the creative economy across the UK.

Ministers are reportedly backing Birmingham as the first choice for Channel 4's new home if the broadcaster wants to remain in public ownership but it is believed the channel is not keen to leave the capital.

Reviews are due to take place and will involve senior figures such as Culture Secretary and Staffordshire Moorlands MP Karen Bradley and Channel 4's chairman Charles Gurassa.

In a statement, it said: "Channel 4 has recently expanded its bases in Glasgow and Manchester and makes a significant contribution to the creative economy across the UK, commissioning over half of its original programming and spending around £150 million annually with producers in the nations and regions, well in excess of Ofcom requirements."

Former culture secretary John Whittingdale was the main cabinet supporter for privatisation but The Sunday Times reports there is little appetite for a sell-off that would raise less than £2 billion.