The former BBC director-general signed the £500,000 deal today to tell his side of the story on the Hutton drama that spilled on to Britain's frontpages last week.
While acknowledging his failings during the Gilligan affair, Dyke is expected to criticise the BBC's board of governors for undeservedly apologising to the government in the wake of Lord Hutton's report. The book is also expected to make uncomfortable reading for the Prime Minister Tony Blair and former Number 10 communications director Alastair Campbell.
Dyke and Murdoch have battled serially over the years and Murdoch is well known for his views on the BBC. In 2002 he said: "The BBC gets anything it wants and has done from any government... then it turns around and sees we have been successful, then puts in copycat channels for which they charge nothing."
Murdoch has also been known to intervene at Harper Collins when he considers publication might have a detrimental effect on his business. One such incident was when he stepped in to halt the publication of Chris Patten's Hong Kong memoirs because he thought they were too critical of the Chinese government.
According to left-wing satirist Michael Moore, Harper Collins ordered him to rewrite sections of his book 'Stupid White Men' following September 11. When he refused, it threatened to pulp the book before a widespread campaign made it change its mind. However there is no evidence as such that Murdoch intervened personally in that instance.
Dyke has a similar loathing for the Murdoch empire. Last year he pulled the BBC's channels from Sky's satellite system and also hit out at the right-wing bias of Fox News' coverage of the Iraq war.
"Commercial pressures may tempt others to follow the Fox News formula of gung-ho patriotism but for the BBC this would be a terrible mistake," he said in April.
Book agent Vivienne Green negotiated the book deal for Dyke. She also represents his close friend Lord Melvyn Bragg.
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