Labour party leader Tony Blair will now have two of Rupert Murdoch's publications, The Sun and The Times, backing his party at the election.
He is also understood to have assured Mr Murdoch, a Eurosceptic, that he will not railroad through plans to join the Euro immediately after being re-elected.
The Labour Party originally had plans to restrict the number of media outlets an individual can own in any given market, but these have been dropped from proposed legislation.
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