The M&E unit includes ITV’s free to air channels along with its streaming service ITVX. The sale talks do not include the ITV Studios business.

In a statement, ITV said: “ITV PLC notes the recent press speculation and confirms that it is in preliminary discussions regarding a possible sale of its M&E business to Sky for an enterprise value of £1.6bn.

“There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place. A further announcement will be made in due course if appropriate.”

The ITV Studios business houses drama specialists including Quay Street, Mammoth Screen and World Productions; entertainment indies including Lifted and unscripted producers including Twofour, South Shore, The Garden and Plimsoll Productions.

Rumoured suitors for ITV Studios in recent times have included Banijay and All3Media parent RedBird IMI.