Rupert Murdoch's News Corp could be split into two companies, separating its publishing assets from its entertainment arm, it has been claimed.

Sources say a final decision on the New York-based firm had yet to be made, but that Murdoch was warming to the idea.

His family is not expected to lose any effective control of any of the businesses involved, exercised through its roughly 40 per cent stake in the conglomerate, according to the Wall Street Journal.