The appointment will come as a blow to the Conservative Party, which is against his appointment on the grounds that the BBC will be run by Labour supporters. BBC director general Greg Dyke is a former Labour Party donor.
The decision to appoint Davies will doubtless spark a huge row between the government and the Conservative Party. The shadow culture secretary Tim Yeo and Conservative Party chairman David Davies have already spoken out against Davies' appointment in the past few days.
The government is expected to announce the appointment of a Conservative supporter to the position of deputy chairman to appease its critics. Baroness Hogg, the head of John Major's policy unit between 1992 and 1995, is tipped as the favourite for the post.
Davies' Labour ties include his wife's job as Gordon Brown's private secretary and his own Party membership. This contrasts with outgoing chairman Sir Christopher Bland, who was always regarded as a Conservative supporter.
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