Â鶹Éç

"This is a tough settlement, but it's also a settlement that delivers certainty and stability for the Â鶹Éç and licence fee payers through to 2016/17. It reflects the centrality of the licence fee in securing and safeguarding public service broadcasting. We recognise the importance of securing such a settlement at such an unprecedented time.

"There is no doubt that the settlement will present us with some difficult choices, but importantly, these choices will remain firmly in the hands of the Â鶹Éç Trust and we will of course seek the views of licence fee payers."

The settlement will keep the licence fee at its current level of £145.50 until 2016/17. Under the settlement the television licence fee will fund the World Service and the Â鶹Éç will make a contribution to funding S4C through a partnership.

Sir Michael added:

"Having considered the details and the circumstances carefully, the Trust believes that this settlement, which reaffirms the corporation's operational and editorial independence, is in the best interests of licence fee payers who will continue to benefit from the high quality services they expect from the Â鶹Éç.

"It brings with it new obligations for the Â鶹Éç. But importantly they are all obligations that are relevant to the Â鶹Éç's mission and purpose – to be a public service broadcaster of the highest quality that serves all audiences.

"In particular the new arrangements will ensure that the World Service remains a vibrant, independent service that brings impartial news to people around the world, while strengthening the Â鶹Éç's ability to bring international news to UK licence fee payers.

"The settlement also seeks to secure the long term future of broadcasting in the Welsh language through the extension of a partnership with S4C.

"The Â鶹Éç is not government funded, but these are pressing times for the nation as a whole, and we believe licence fee payers would expect us to see what contribution we can properly make.

"The extra responsibilities the Â鶹Éç will now take on are consistent with this and will deliver benefits to licence fee payers across the UK."

Â鶹Éç Director General Mark Thompson said:

"This is a realistic deal in exceptional circumstances securing a strong independent Â鶹Éç for the next six years. It means that efficiency and reform will continue to be key issues for us. But our focus remains providing distinctive, high quality programmes valued by the public. This deal will safeguard that until 2017."