The government is considering selling off Channel 4, David Cameron confirmed today after months of denials.

Ministers have repeatedly said that there are 'no plans' to privatise the broadcaster, which has been valued at £1billion.

But today Mr Cameron said it was 'right to look at all of the options' including handing the channel over to private broadcasters.

The government is considering selling off Channel 4, David Cameron confirmed today after months of denials

Two months ago official was pictured walking into Number 10 carrying a paper setting out options for a sell-off, which are being discussed at cabinet level.

It came just days after Culture Secretary John Whittingdale told MPs: 'There are no plans to sell Channel 4.'

Today Mr Cameron was challenged at Prime Minister's Questions on the plans by the SNP's John Nicolson, a former journalist for the BBC and ITV.

The MP for East Dunbartonshire said: 'Can the Prime Minister confirm that remains the Government's position, that no discussions are under way to privatise and thus imperil this much loved and important public institution.'

Mr Cameron replied: 'Well first of all, let me say I'm a huge fan of Channel 4 and Channel 4 was a great Conservative innovation. I think it was a combination of Willie Whitelaw and Margaret Thatcher that helped to bring Channel 4 to our screens and I'm a huge fan.

'I want to make sure that Channel 4 has a strong and secure future and I think it's right to look at all of the options including to see whether private investment into Channel 4 could help safeguard it for the future.

'Let's have a look at all the options, let's not close our minds like some on the Opposition front bench who think that private is bad and public is good, let's have a proper look at how we can make sure this great channel goes on being great for many years to come.'

The remarks fuelled speculation that privatisation plans could be announced at the Autumn Statement later this month.

Mr Cameron was challenged at Prime Minister's Questions on the plans by the SNP's John Nicolson, a former journalist for the BBC and ITV

Mr Nicolson said: 'My understanding is that there are Government proposals to privatise Channel 4 and they are at an advanced stage.

'The SNP will resist any move to privatise this much loved public institution.

Privatisation will drain an estimated £150 million a year from programme making and into the pockets of shareholders. Distinctive Channel 4 output like the Paralympic coverage, Dispatches and 'Unreported World' will be threatened.'

A Downing Street source declined to say whether reforms to Channel 4 will feature in Chancellor George Osborne's Autumn Statement later this month.

The source said: 'As the Prime Minister said, we want to look at the various options to secure a future for a strong Channel 4.'

Asked whether Jeremy Corbyn would support the privatisation of Channel 4, a senior Labour source said: 'We would be suspicious of why that privatisation is taking place, but we would need to look at the detail of it.'

He asked: 'What comes out of that privatisation? Is it less funding? That needs to be looked at.'

An Ofcom review of public service broadcasting is set to consider the future of the channel, which is wholly owned by the taxpayer.

The broadcaster, which launched in 1982, has escaped repeated calls for privatisation in the past.

Proposals to privatise the channel were last considered under the Coalition but it was blocked by the then-Business Secretary Vince Cable and the Liberal Democrats.

Selling Channel 4 could be seen as something of an easy win for the Government, as it seeks to find new savings.

The taxpayer has a 100 per cent shareholding in Channel 4 but relatively few viewers are even aware that it is state-owned.

Channel 4 launched in 1982, to provide a fourth television service to Britain, alongside BBC1, BBC2 and ITV.

It has been funded by advertising and sponsorship deals since the outset, starting with a commercial for Vauxhall cars.