An investigator working for the News of the World allegedly hacked into the mobile phone of murdered schoolgirl Milly Dowler, according to the Dowler family lawyer, Mark Lewis.
The allegations have led to criticisms of Rebekah Brooks, the current chief executive of News International and the editor of the News of the World at the time of Milly Dowler's murder.
But business editor Robert Peston reported that she is insisting she will not resign, and that she intends to "see the process through".
"She will be in a vulnerable position for a while. That said, one should not underestimate how close she is to Rupert Murdoch," he said.
Media commentator Steve Hewlett said the latest allegation suggested that voicemail hacking was an "industrial scale activity, which makes editor's denials they knew anything about it yet more implausible".
But debating whether the allegations affect the purchase of BSkyB, Conservative chairman of the culture committee, John Whittingdale, who was responsible for examining the phone tapping scandal in 2006, said that "you could not necessarily condemn the entire of NewsCorp" because "something was very clearly going wrong" at the News of the World.
"That does seem to me a very separate question," he said.
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