According to report in Media Week, News International is looking to distribute a new paper outside of Tube and train stations in London before any agreement is made on the Tube contract, giving it a headstart on any future new launch.
News International had previously looked at the idea of launching a free London evening paper, but it abandoned the idea four years ago in 2002 after a distribution deal with Railtrack failed to materialise.
Transport for London intends to send out tenders by late June, and a final decision on who gets the contract could be made by the autumn.
It is believed that News International is waiting for "the green light" from Rupert Murdoch before it makes any further announcement.
There is speculation over how much the contract for a new afternoon London paper will cost, with Ken Livingstone indicating he expects the bid to be around £4.6m, comparable with the Metro deal. However, others believe that figure will be closer to £1m.
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