The news comes a week after the commercial channel won the rights for cricket coverage from the corporation.

BBC Media Correspondent Nick Higham reports

Although Channel 4 is only halfway through a two year deal to show athletics, this agreement is defunct since it was signed with the British Athletics Federation before it went into receivership.

The BBC is now negotiating with UK 98, the body set up to temporarily govern the sport after the BAF's demise.

Channel 4 says after spending so much on the cricket, it could not match a BBC bid worth "several times more" than its own offer for athletics.

Karen Brown, C4's deputy director of programmes said: "We have really enjoyed our association with British athletics."

She added: "Naturally the BBC is hungry for sports rights to fill the hole in its summer schedules."

UK 98 chief executive David Moorcroft said: "We're grateful to Channel 4 for supporting the sport of athletics and for focusing on the development of our young athletes like Julian Golding and Christian Malcolm."

The BBC's deal - which has not yet been officially announced - is said to be worth several times the £1m a year paid by Channel 4.

A spokesman confirmed the corporation's interest.

"The BBC already has a significant presence in world athletics with the Olympics, the Commonwealth Games and the European Championships," he said.

"Becoming involved in UK athletics would complete the circle.

"Discussions have been developing for some time and are ongoing but there is nothing to announce at this moment."

Elections to govern sport

UK 98, which has been running the sport since the BAF's demise, is a temporary body, and will be replaced by a new organisation called Athletics UK in January 1999.

Presidential candidate Steve Ovett in his record-winning prime

It was announced on Friday that former athletics greats Steve Ovett and David Hemery are among five candidates to become its president.

The two former world record holders line up against Sir Eddie Culukundis, Tom McNab and Dr Mike Turner.

Businessman Sir Eddie is married to actress Susan Hampshire and was knighted in 1993 for his services to sport.

McNab was a nationally ranked triple jumper from 1951-63 and set up the decathlon programme which produced Daley Thompson.