The negotiations are expected to usurp an earlier carriage deal between NTL and BSkyB, which is likely to be blocked by the Office of Fair Trading.
The OFT is currently investigating BSkyB's wholesale activities after rival ITV Digital lodged a complaint about the prices the satellite broadcaster is charging competitors for access to its Sky-branded channels, such as Sky Sports.
If the OFT does block the NTL deal, it is likely that BSkyB will be found guilty of abusing its dominant position in the marketplace. If it is, then it could be fined up 10% of its annual UK turnover.
However, it is believed that BSkyB, 37.5%-owned by Rupert Murdoch's News Corporation, would more likely be told to offer its competitors more favourable terms.
The OFT is expected to conclude its inquiry by the end of the year.
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