Speculation has been rife that the company was going to pull its 500,000-circulation publication, which lost £16.5m in the first year of its operation.

However, News International has laughed off the claims as rumour, likely started by its rivals.

A News International spokeswoman said: "thelondonpaper has established itself as the capital's leading afternoon paper with an audited daily circulation of over 500,000 and strong advertising revenue.

"News International has backed its confidence in the long-term future of the industry with a recent £650m investment in next-generation print plants. We intend to build on the success of our market leading national titles and that of thelondonpaper in the years ahead."

The publisher also this week announced a new management structure, with Clive Milner being announced as chief operating office. Milner will have responsibility for manufacturing, technology, distribution, procurement and facilities.

Elsewhere Paul Hayes has been appointed managing director for commercial and Mike Anderson is to become managing director of digital and development. A chief marketing officer for News International Ltd will also be appointed in due course, the company said.

James Murdoch, chairman and chief executive for Europe and Asia, at News International's parent company News Corporation, said: "These appointments will streamline and strengthen our management team and will bring us closer to our readers and advertisers, creating greater benefits for both.

"The new management structure is an essential first step in delivering the changes required to further develop our market leading titles and set the pace for the industry."