Murdoch to launch new Sunday tabloid

"As you know News Corporation has made clear its determination to sort out what has gone wrong in the past and we are fundamentally changing how we operate as a business," BBC quoted an internal letter, written by News International CEO Tom Mockridge, as saying.

Mockridge said that "every one of us will seize the opportunity to pull together and deliver a great new dawn for The Sun this Sunday."

The name of the Sun on Sunday's Chief Editor has yet to be announced, BBC said.

Murdoch's News Corporation media holding has come under intense criticism by politicians in Britain after it emerged that some newspaper journalists employed by the group had written stories based on material ilegally accessed by hacking into people's phone messages, including those belonging to crime victims, celebrities and politicians.

Murdoch, who arrived to News International's headquarters in the Wapping district of London on Friday, said that he would oversee the launch, BBC said.

The media mogul also lifted the suspension of ten former News of The World reporters who were arrested in November over paying bribes to public officials to access information for stories.