Speculation about the future of the paper was re-ignited recently when Richard Desmond was spotted having lunch with Trinity Mirror chairman Sir Victor Blank at the Savoy Grill.
The People has been performing badly for some time despite a relaunch last year, and many in the industry believe it would make sense for Trinity Mirror to sell the paper and concentrate on its other Sunday tabloid, the Sunday Mirror.
However, Trinity Mirror has rejected the speculation, saying that The People is still an important part of its national newspaper group.
A spokeswoman for the company said: "Categorically, there is no for sale sign on The People. It's a valuable and valued part of our national portfolio."
A sale of The People would help the company solve some of its financial problems and allow it to invest elsewhere. The Daily Mirror recently saw its circulation dip below 2m, although in the last set of ABCs for May it rose 1.9%.
Richard Hiscock, media analyst at Numis, said: "The People has been underperforming, with its circulation declining dramatically. There comes a time when [Trinity] would have to cut its losses. Selling it would enable it to reduce its overheads substantially."
Desmond is seen as a likely buyer for The People, which he could merge with his own Sunday tabloid the Daily Star Sunday.
In the last set of ABCs for May, The People was down 0.11% to 1,100,895, while Desmond's Daily Star Sunday was up 4.71% on the previous month to 485,454. Last May, the Sunday People was selling 1,319,219, a fall of 218,000 copies.
According to Hiscock: "Desmond would be an obvious buyer for The People because he is already making moves in the Sunday market."
This view is backed up by Simon Lapthorne, media analyst at Arbuthnot Securities, who believes he could try and convert readers from The People to the Sunday Star, although he warns he "would have to be careful because of reader loyalty", which is strong in the tabloid market.
He believes Desmond has shown what is possible with a tabloid newspaper, with the success of The Daily Star.
"Desmond has shown what can be done with a tabloid by putting a lot of investment behind it, while the Daily Mirror struggles on without a clear strategy," Lapthorne said.
It is also thought that if Trinity Mirror was thinking about selling the title to Desmond, Sir Victor would be unlikely to discuss it over lunch in such a public place.
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