Granada has decided to agree with the "substantial body of [shareholder] opinion" and appoint an outsider to the role of ITV chairman.

Carlton's Michael Green was being lined up for the position at the head of the newly merged company, but growing calls amongst shareholders for him to resign cast a shadow over the impending appointment.

A statement from the board of Granada this morning read: "The board of governors recognises that this is a matter of corporate governance and, furthermore is determined that ITV should go forward with the full support of its shareholders; moreover, Granada is concerned that the present uncertainty should be removed as swiftly as possible.

"Accordingly, the board of Granada has given careful consideration to the views of shareholders and decided that their interests will be best served by the appointment of a new chairman from outside the enlarged ITV plc."

Yesterday the disgruntled shareholders rejected a "compromise offer" from Carlton which would see Green stay on but step down in May 2005.