Internal BBC documents, seen by The Guardian, reveal that BBC director general Mark Thompson wants to "release 20% (£89m) in overall savings between 2013/14 and 2016/17" under the Delivering Quality First initiative.
A variety of different proposals are under consideration to reduce the BBC News channel's £46m-a-year budget, including the idea of "offering a slimmed-down channel focusing on developing news and headlines". The document also indicates that the rolling news channel should improve its reputation for delivering breaking news stories.
Another proposal on the table involves making the BBC Parliament channel "more cost effective and accessible", while also generating more revenue from selling BBC News output to overseas broadcasters.
However, a BBC News spokeswoman said that "no decisions" have been made in the DQF process, and any proposals would have to be first approved by the BBC Trust.
Both the BBC News and BBC Parliament channels will be reviewed by the Trust this year, including a public consultation on their "quality, distinctiveness and value for money".
The BBC is targeting the 20% budget savings following the six-year freeze to its licence fee funding agreed with the government last October, along with new funding responsibilities such as BBC World Service.
Last month, it emerged that a cost-cutting proposal put forward by BBC staff suggested axing overnight programmes on BBC One and BBC Two, while another mooted replacing BBC Two's daytime shows with output from the BBC News channel.
Final proposals agreed under the DQF process are due to be put before the BBC Trust in the summer.