The announcement follows Express Newspapers owner Richard Desmond pulling out of the bidding war.

A spokesman for Northern & Shell said: We didnt want to move forward. We were in the bidding process to buy a business not a trophy asset.
We look forward to talking to The Telegraphs eventual owner about printing arrangements at West Ferry.

Desmond had said in an interview with The Guardian last month that he would prevent the Telegraphs new owners from using West Ferry after the current contract runs out in 2009 (PrintWeek, 11 March).

The Telegraph Group and Express Newspapers jointly own the firm, but Desmond has the right to buy the remaining 50% stake in West Ferry if The Telegraph changes hands.

Northern & Shell declined to comment whether this was a softening by Desmond, or whether he would stick by his original plan to prevent the new owners from using West Ferry after 2009.

US newspaper giant Gannett has also pulled out of the race, claiming the price was too high.

The battle for The Telegraph look set to be between the Barclay brothers, who have bid around 700m for the titles, and The Daily Mail and General Trust.

Story by Andy Scott