BBC News is reporting that the News of the World has sacked former head of news Ian Edmondson following an internal inquiry.
The news comes as police have launched a fresh investigation into phone hacking after receiving "significant new information".
The BBC says the information relates to hacking at the News of the World in 2005, which led to its royal editor being jailed.
On the Edmondson sacking, the BBC says a source said a trawl of his e-mails had found "highly damaging evidence" that had been passed to the police.
Edmondson was suspended in December after he was identified in court documents as having instructed private investigator Glenn Mulcaire to access phone messages.
The new inquiry will be moved from the Met Police's counter terrorism command to the specialist crime directorate.
- BBC business editor Robert Peston says on his blog:
"At 1000 yesterday investigators from News International found e-mails that allegedly show that Mr Edmondson had knowledge of attempts to hack into the mobile phones of prominent individuals by the private investigator Glen Mulcaire.
"News International confronted Mr Edmondson with the e-mails and dismissed him at 1600.
"The UK arm of Rupert Murdoch's News Corporation then sent the new evidence to the police. And it is this information which is the basis of the fresh police enquiry announced today.
"There can now be no doubt that News International has abandoned its previous position that it had uncovered everything there was to find about possible malpractice in the way the News of the World tried to uncover information about the private lives of celebrities and public figures.
"It now appears to be aggressively investigating the involvement of its employees in a way it didn't do hitherto"
- In a remarkable run of media stories the BBC News at five 0'clock lead on phone hacking, sacking of Edmondson, followed by the sexism row at Sky Sports and the 650 job cuts at BBC World Service.