Mark Thompson said a cabal was intent on pushing through the plans
BBC director general Mark Thompson has criticised proposals to share some of the licence fee, saying it would be a good idea "under no circumstances".
Mr Thompson said the BBC's independence and ability to deliver public services would be compromised by plans to use funds for other broadcasters.
He added a "small group" of people was determined to push through proposals.
A spokesman for the Department of Culture said it was "disappointed" by Mr Thompson's comments.
'Fairest idea'
"We hope the BBC will engage constructively in the forthcoming consultation.
"The public greatly value local and regional news. We have invited the BBC and others to suggest how it can be secured for the long term.
"Using a small fraction of the licence fee to do so is the best and fairest idea so far, but, as we have said, we will happily consider others," the spokesman added.
In an interview to be broadcast on Radio 4's The Media Show, Mr Thompson said the "small group" was "ideologically focused more on the principle of getting a wedge into the licence fee, rather than having a particular urgent need."
The chairman of the BBC Trust, Sir Michael Lyons, also came out against recommendations for sharing the licence fee when they were published last week.
THE MEDIA SHOW
Listen to Mark Thompson's full interview on BBC Radio 4 at 1330 BST on Wednesday 24 June
He said it should not be used as a "slush fund" and that dividing up the revenue would "damage BBC output".
As part of the Digital Britain report, the government outlined proposals to allocate 3.5% of the licence fee to other broadcasters including ITV to fund the provision of regional news and children's programming.
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