Communications Minister Malcolm Turnbull has backed further deregulation of the media industry as he praised media mogul Rupert Murdoch as the ''most normal'' proprietor he knows.

The current rules prevent metropolitan free-to-air television networks from merging with regional affiliates. The so-called ''two-out-of-three rule'', also prevents a single entity owning more than two of a newspaper, TV station and radio licence in the same market. Mr Turnbull held a two-hour meeting with media executives last week.

It is understood Ten Network Holdings and Nine Entertainment Co argued for the removal of the regional reach rules and the two-out-of-three rule. Mr Murdoch's News Corp is also believed to have supported the scrapping of the two-out-of-three rule, with the Seven Network less enthusiastic about the reform.