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It is understood that Freud has become frustrated by Associated Newspapers, Express Newspapers and The Telegraph Group's decision to boycott last year's awards ceremony, after claiming that co-owners Freud and Piers Morgan, were "inappropriate administrators".

The controversial boycott meant that nine titles, including the Daily Telegraph, the Daily Mail, The Evening Standard, Daily and Sunday Express could not be considered for last year's awards, significantly damaging the BPA's prestige.

Only 450 guests attended the awards when in previous years it had attracted as many as 900.

Press Gazette confirmed that Philippa Kennedy, the trade paper's former editor, had been working with the London Press Club and the Journalist's Charity, to find an alternative proposal for next year's ceremony.

Freud, who co-acquired Press Gazette with Piers Morgan in June 2005 from Quantum Publishing, has indicated a wish to stop funding the title, sparking speculation about a possible sale.

According to media speculation, Associated and The Telegraph Group objected to Freud's close ties with News International -- he is married to Elisabeth Murdoch -- and his PR business with The Sun and News of The World.

Morgan, a former editor of the Daily Mirror, was also criticised by Associated and The Telegraph Group for his business with Trinity Mirror and Sky, sparking some media commentators to refer to Press Gazette as "Morgan's Organ".

The trouble for the the British Press Awards began soon after the 2005 ceremony when 10 editors released a joint statement announcing their boycott because of the "decline in conduct and prestige".

The statement read, "The editors of The Guardian, The Observer, The Daily Telegraph, the Sunday Telegraph, The Independent, the Independent on Sunday, the Daily Express, the Sunday Express, the Daily Mail, and the Mail on Sunday believe the organisation of these awards brings little credit to the industry or to the newspapers who win them".

Press Gazette, which has a circulation of 5,010, was previously owned by Emap, along with Media Week, before it was sold to Quantum.

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