Rupert Murdoch's group will exercise an option which will force Kirch into buying BSkyB's 22% stake in the KirchPayTV and Premiere World networks.
Speculation that BSkyB was considering increasing its stake in Premiere rather than selling up has been dismissed as "complete nonsense".
A BSkyB spokesperson was adamant that it wants cash for its stake in Premiere, but the possibility of seeking other assets in lieu of cash has not been dismissed.
The stake is valued at an estimated £1bn (€1.7bn). However, analysts doubt that BSkyB will see much of the money, since Kirch's is currently straining under the weight of a €6.5bn debt.
Premiere is losing money at a dramatic rate and Kirch executives say that unless new investors come on board, it will not last the end of the year.
Some analysts say that Kirch faces being broken up in order to pay off its debts. However, the privately owned group is determined to turn the business around with fresh investment.
Dieter Hahn, chief executive of Kirch, said: "We have put together a well-fitting collection of assets for a fully integrated company. We've a very good chance with the right partners to keep this vision together and to further develop it."
Kirch's other assets include the rights to Formula 1, the football World Cup, the German TV broadcaster ProSiebenSat.1 and a 40% stake in Axel Springer, publishers of Germany's most popular daily paper Der Bild.
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