BBC One chiefs are considering Waterloo Road, River City or a new production as replacements for Neighbours.

Peter Fincham, channel controller, is looking at options to fill the soap's two slots each day when it moves to Five in March.

Shed Productions, which makes Waterloo Road, currently a peak-time show, has been asked to think about a long-running version and moving from an hour to half-hour episodes, reports the Media Guardian.

Fincham's other preferred option is said to be moving River City, currently successful on the channel in Scotland, UK wide.

He has also approached independent drama producers. Lime Productions, which makes Hollyoaks, and LA Productions, a co-creator of Brookside, are thought to be looking at options.

However, producers are apparently disputing a number of issues with the BBC. Sources say £90,000 is being offered for one episode compared to the £135,000 each Hollyoaks can cost.

Secondly, while the BBC is said to initially want 40 episodes, producers say it would have to be more to be cost effective. They also argue it will be difficult to have a new series ready for March.

A source commented: "They don't want it to be any more expensive than Neighbours. It is a tall order for whoever does it."