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Yeo attacked the government for dithering over policy and putting services to ITV Digital subscribers at risk.

He said: "The success of digital terrestrial television depends on effective competition between at least three providers. Everyone is aware there are acute problems there and the government has absolutely no strategy to address those problems."

The broadcasting minister Kim Howells said he would not "speculate on the likely outcome of discussions on the future of ITV Digital".

He said: "All that rant achieves is to further undermine the position of some very important companies."

ITV Digital won a further reprieve last night as talks with the Football League continued. The news that talks would continue followed an ITV Digital board meeting yesterday.

It will mean that there will be no closure of the service, at least for the time being.

Following the exchange in the Commons yesterday between Yeo and Howells, the sports minister Richard Caborn said he was willing to act as an intermediary in the talks between ITV Digital and the Football League.

Liberal Democrat spokesman Nick Harvey urged the government to ensure everyone could get access to digital TV through a one-off payment rather than subscribing to services they may not want.

ITV Digital has had an uphill struggle since it launched in 1998, following the government's request for a digital terrestrial platform that offered an alternative to cable and satellite.

However, ITV Digital has proved no match for rival Sky Digital, which has 5.7m subscribers compared with ITV Digital's 1.2m.

ITV Digital parents Carlton Communications and Granada are believed to be ready to close the service, which has already cost them £800m and looks set to cost them a further £300m before it breaks even in 2004, after trying to renegotiate a £315m deal for football rights.

ITV Digital has asked the Football League to reduce the outstanding sum it owes from £178m to £50m, because it says it can not afford the larger payment.

The Football League has rejected the offer and says it will sue Carlton and Granada if they renege on the deal for the outstanding sum plus lost revenues, amounting to £500m.

This has added to the woes of ITV Digital, which has struggled with problems such as a weak signal and having to compete with the marketing budget of BSkyB, which is backed by News Corporation.

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