Granada and Carlton have announced they have agreed merger terms, less than one week after they revealed that they were at an "advanced" stage of negotiations.

A merger still needs to be approved by the regulator before it can come into effect and it is likely that advertisers and other broadcasters will complain.

Michael Green, Carlton chairman, said: "One ITV has been a vision long in the making. One company, with one management and one focus can now set its sights firmly on beating the opposition and giving viewers and advertisers what they want. I want this merger to mean great television programmes and the strongest possible schedule. We must make sure that it does just that."

In a joint announcement, the pair laid the case for a merger, saying that it would "help to create a virtuous circle of maximising investment in quality programming leading to increased viewing, generating greater advertising demand and consequently allowing further investment." To that end, they claimed that it would be beneficial for viewers, advertisers and shareholders.

"We’ll work in partnership with our advertisers to use the full power of ITV to drive their brands and businesses," said Granada chairman Charles Allen. "For shareholders, this deal offers fair value now and the opportunity to benefit from increased efficiencies from a strengthened and more focused ITV."

Among the agreed elements, largely unchanged from last week, sees Green becoming chairman of the new £2.6bn group, with Allen taking the role of CEO. Granada shareholders will get 68% of the company, with Carlton the other 32% ("potentially" increasing to 34%).

They noted that the merger would still need regulatory approval, but that if it got "sufficent" clearance before the communications act came into force, it would proceed with establishing the interim structure.

Further details during the morning on Digital Spy.