The Daily Telegraph says that Tony Ball, the chief executive of BSkyB had "all but given up" on Kirch.
Sky took a stake in Kirch's PremierTV cable subsidiary two years and as part of the deal, Sky can demand that Kirch pays the money back from October 2002.
But there are strong fears that Kirch, which is reportedly about GBP3bn (USD4.3bn/EUR4.8bn) in debt, will not be able to pay Sky back.
If Kirch is unable to stick to its agreement with BSkyB then the former may proceed with its alleged intentions to take over the whole of Kirch Gruppe.
Meanwhile, the Financial Times today reports that French terrestrial TV channel TF1 has been talking to Kirch about buying its 25 percent stake in the Spanish broadcaster Telecinco.
The same paper also says Kirch has been talking to Liberty Meida group about ways to help it meet its loan repayments.
