The 39-year-old has resigned just weeks after quitting as boss of his father's British newspaper empire which has been engulfed in the phone-hacking scandal.

He stood aside today just weeks before he is expected to be heavily criticised in a House of Commons Culture, Media and Sport Committee report about practices at the News of the World.

Chair of the committee John Whittingdale said Mr Murdoch had not seen an advance copy of the report.

James Murdoch will be replaced by deputy chairman Nick Ferguson at BSkyB and he is expected to remain as a non-executive director.

His resignation will reignite speculation that the Murdoch family could begin to relinquish their British media interests by selling off their three newspapers The Sun, The Times and the Sunday Times.

Mr Murdoch and his father Rupert, the chief operating officer of News Corporation, are both expected to give evidence to the Leveson Inquiry later this month.