The BBC is to close down half its website, cut spending on imported American programs and close two radio stations in an admission it has become too large.

In a strategic review to be unveiled next month, The Times said on Friday the corporation would concede it must give space to its commercial rivals which have been hard hit by an advertising downturn during the recession.

The British Broadcasting Corporation, funded by the licence fee levied on all those in Britain who own a television, regularly comes under fire from rivals and other critics for its alleged unfair dominance.

BBC director general Mark Thompson will announce a cut in its website pages by half, backed by a 25 per cent cut in staff and budget, said the paper.

It will further close digital radio stations 6 Music and Asian Network and close outlets that target the teenage market, leaving the area free for rivals.