It is thought that Cox will be named chairman of the digital stakeholders group, a body charged with promoting the rollout of digital television.
Already being dubbed the "digital tsar", Cox is reported to have known Blair for 20 years, from when the two were neighbours. His appointment is also likely to draw criticism from commercial broadcasters such as ITV and BSkyB, concerned that Cox will be biased towards state-owned broadcasters.
The government has set a date of 2010 for switching off analogue television signals, but this date is starting to look somewhat unrealistic. At the moment, 40% of UK homes have subscribed to digital television. However, research has shown that a large proportion of households are unaware that the analogue signal is to be turned off.
Last week, Pace Microtechnology said it would be ready as early as March to release a £99 set-top box, which would be able to receive free digital channels. These include ITV2 and BBC Choice.
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