Cable operator NTL has confirmed it is in "advanced discussions" over a bid for certain assets of Cable & Wireless Communications, believed to be its residential cable operations.

NTL bought Cablelink in May for £535 million (€679 million).

France Telecom announced it had agreed to inject $1 billion (€978 million) into NTL for future deals in Britain, effectively taking a 10 per cent stake in the group.

Meanwhile, Cable & Wireless Communications confirmed it had been in talks over the transfer of "various businesses" with Telewest, the third of the British cable companies.

The announcements followed reports that NTL, was to team up with France Telecom to launch an £8 billion bid for the network.

NTL would not be big enough to buy Cable & Wireless Communication's network itself, so France Telecom is thought to be planning a move to provide extra finances in return for a stake in the bidder.