ITV said it was looking at cutting jobs as part of a new drive to reduce costs in the tough advertising market.

But the country's largest commercial broadcaster stressed its commitment to Manchester - home of Coronation Street.

Occupying a small part of the giant Quay Street site which includes the former Granada Studios Tour attraction, ITV is widely expected to move to mediacity:uk at Salford Quays.

Chief operating officer John Cresswell said: "We're disappointed not to have made an announcement yet, but we're getting close. I think we're in the last throes of negotiations with the various parties. I hope to be in Manchester and be talking to our staff there soon."

Executive chairman Michael Grade added: "We are committed to production in Manchester - it is home to Britain's most successful television series."

Neither Mr Grade nor Mr Cresswell would discuss the regional impact on jobs of the cost cuts, beyond confirming it was `realistic' to expect they would occur. ITV employs around 6,000 people, with around 1,000 based in Manchester.

Mr Grade was bullish, despite a 28 per cent slump in profits to £91m, citing rising viewing figures at ITV. But the City did not share his enthusiasm, and shares - which have halved since last year - slid a further 5.8 per cent to 43.6p.

The major reasons for the fall were a 50 per cent cut in the half-year dividend and the poor outlook for the advertising market.

Mr Grade, the former BBC chairman, said the group's five-year turnaround strategy, launched after he joined at the end of 2006, was `dependent on the economy'.

He added there was now an urgent need for the government and broadcasting regulators to take action to alleviate the company's Contract Rights Renewal scheme, which allows advertisers to cut spending on ITV1 if ratings decline.

It is under review by telecoms regulator Ofcom and the Office of Fair Trading. "Action needs to be taken now to relieve us of (this burden)," he said.