Edmonds hosts the UK version of the international hit gameshow

The former House Party and Telly Addicts host will front the show, which has prize money of up to �250,000, until the autumn of 2007.

Neither Edmonds' spokesman nor Channel 4 would comment on a Daily Mail report that the contract was worth �3m.

The show, which is broadcast six days a week, has regularly attracted audiences of about four million.

Launched in October, Deal or No Deal has revived the fortunes of Edmonds, one of UK TV's most popular stars from the 1970s to 1990s.

Contestants choose from 22 boxes, each containing different amounts of money - from 1p to �250,000 - while pitting their wits against an unseen "banker", with Edmonds acting as an intermediary.

In December, Adam MacDonald, Channel 4's head of daytime TV, labelled the programme the "break-out hit" of the autumn season and called Edmonds "the consummate TV talent".

Noel's House Party, featuring Mr Blobby, ran from 1991 to 1999

Originally a BBC Radio 1 presenter, Edmonds' other hits have included Multi-Coloured Swap Shop and The Late Late Breakfast Show.

He left the BBC when his contract expired in 2000, saying the programmes were "too boring".

Apart from a spell hosting a BBC Radio 2 show in 2003, Edmonds kept a low profile before the launch of Deal or No Deal.