BBC chief Greg Dyke hopes to save millions

The BBC's board of Governors has backed the proposal, which will need government approval.

Under the plans, outside firms will be asked to bid for the BBC's technology contract, with the condition that they buy BBC Technology Ltd.

Last year the unit, which employs some 1,400 people, provided the BBC with profits and savings totalling �19m.

The move is part of a "self help" order imposed on the broadcaster by the government as part of its 2000 licence fee settlement.

'Significant' savings

Under the ruling, the BBC was told to find �1bn through efficiencies, savings and increased commercial activities by 2007.

One suggestion put forward by the then Culture Secretary Chris Smith was the sale of some BBC assets.

Director General Greg Dyke said: "By taking our technical support contract to the market and selling BBC Technology we can achieve significant savings over a sustained period of time.

"We would also expect to receive a significant sum of cash for the business."

Bidders will have to agree to take on the unit's staff, Mr Dyke added.