Twenty-eight years at Granada is a very good innings and now I would like to turn my hand to something new

Steve Morrison

He will leave the company at the end of September, leaving chairman Charles Allen to take a more active role and lead the business.

Mr Morrison's departure had been widely expected.

It was during his reign at Granada that the pay-TV company ITV Digital collapsed - a firm jointly owned by Granada and Carlton.

Investors and media analysts have also criticised Mr Morrison over the failure of merger talks between Granada and Carlton.

Granada-Carlton merger

Mr Allen has hinted that a merger between the two big ITV companies might now be closer.

In a statement he said the management changes positioned Granada to "take advantage of consolidation and other opportunities made possible through new legislation".

Mr Morrison's departure is the second high-profile ITV resignation since the ITV Digital debacle.

Stuart Prebble, stepped down as ITV chief executive in May. He had previously run the pay-TV business.

Time for something new

Mr Morrison is not being directly replaced as chief executive.

But Sir George Russell will join Granada as non-executive deputy chairman.

He said: "Commercial television in the UK is now entering a defining period and I look forward to helping Granada play a leading role".

Mr Morrison joined Granada as a producer in 1974.

"Twenty-eight years at Granada is a very good innings and now I would like to turn my hand to something new," he said in a statement.