Associated, which is a subsidiary of Daily Mail publisher Daily Mail and General Trust, entered into a 30-day consultation with 36 journalists and administration staff today.

Steve Auckland, managing director of Associated Newspapers' free division, said: "The latest development in the London afternoon free newspaper space dictates that we look again at the future of London Lite. 

"Despite reaching a large audience with an excellent editorial format, we are concerned about the commercial viability in this highly competitive area."

London Lite is printed by Harmsworth printers, at its Harmsworth Quays site. Print jobs are expected to be unaffected by the move.

If the title closes, it will conclude more than three years of fighting in the capital involving Associated Newspapers and publishing rival News International.

Rupert Murdoch launched thelondonpaper in 2006 to "kill off the Evening Standard", back when he believed that free newspapers were the way forward.

The London Lite was launched by Associated in August 2006 to compete with the thelondonpaper.

Neither title has done particularly well, both losing their owners money, eventually leading to the closure of thelondonpaper in August this year.

In the mean time Associated sold the Evening Standard, which was turned into a freesheet, effectively going up against London Lite.

The irony of the situation is that Murdoch believed the Evening Standard could be killed off by a free publication, but seems to have succeeded in turning it into a freesheet instead.

Meanwhile he has now made a complete U-turn and believes all content, printed or internet, should be paid for.