The Chinese government has said it would be fine for the two companies to broadcast in a restricted area in China, as long as a China Central Television channel was made widely available in the US.
It is reported that negotiations have reached an advanced stage for Star, News Corp's Asian TV network, to begin broadcasting an entertainment channel in Guangdong, the wealthiest province in China.
The news comes after years of struggle for Western broadcasters to win access to the Chinese TV market.
Rupert Murdoch's Star has been making attempts to ingratiate itself with the Chinese government by criticising the outlawed spiritual movement Falun Gong.
In efforts to ingratiate himself to the Chinese government, Murdoch also threw the BBC off of his Star network following complaints from Bejing about critical coverage of the Chinese regime.