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Rupert Murdoch is due to launch the Sunday Sun - the News of the World's (NotW) replacement - in April, according to an MP.
Tom Watson, who sits on the culture, media and sport select committee that grilled News Corporation chief Murdoch over phone hacking in July, fuelled speculation about the media mogul's next move
"A News Corp source tells me Rupert Murdoch has seen the draft designs of the Sunday Sun with a launch in April at a discounted price," Watson tweeted.
Shortly after the scandal-hit NotW was closed down by Murdoch in July, after phone hacking revelations pushed him into a corner over the future of the profitable newspaper, the idea of a new tabloid replacement was mooted.
News International, the News Corp subsidiary that owned NotW, bought the domain sunonsunday.co.uk, further adding to the rumours.
Nothing has officially been confirmed by News Corp.
A News Corp spokesperson declined International Business Times UK's request for comment.