
Last year, GNM considered closing the world's oldest Sunday newspaper but has since decided instead to back The Observer with a fresh look and marketing drive created by Wieden & Kennedy.
The title recorded a circulation of 351,019 in December 2009 - a fall of 16.5% year on year. However, much of this was down to GNM's decision to stop distributing free and discounted bulk editions.
Industry observers believe that GNM is genuinely committed to the relaunch. It is also understood that the company will move away from marketing campaigns centred on DVD and CD giveaways.
GNM commercial director Adam Freeman and other senior staff are currently circulating dummy copies of the paper to media agencies and briefing them about the changes.
The redesigned paper will now comprise four sections: news, sport, a review section and the Observer Magazine. TV listings have been added to an expanded review section, which will also include some of the title's most high-profile writers, such as the comedian David Mitchell, whose column was previously in the main section of the paper.
Further changes being showcased to agencies include the shifting of other columnists, such as Mariella Frostrup, from the back to the front of the Observer Magazine. The cover price is expected to remain unchanged at £2.
GNM had looked at closing The Observer in a bid to cut costs, after posting a £57m pre-tax loss for the year to March 2009.
This sparked a campaign to prevent the paper's closure, backed by high-profile figures, including satirist Rory Bremner, journalist Cristina Odone and GQ editor Dylan Jones, as well as a ‘Save The Observer' Facebook group that attracted 9000 members.
Last year GNM decided to axe the Observer Sport Monthly, Observer Music Monthly and Observer Woman supplements.However, it decided to retain the Observer Food Monthly.
GNM declined to comment on The Observer's relaunch.