First cabinet, then ALP caucus has approved a raft of media reforms, The Australian has reported.

A much-discussed possible merger between Nine Entertainment Co and Southern Cross Media is now one step closer to reality, with the reforms expected to include a relaxation of the 75% reach rule.

Other likely inclusions are a cut to licence fees for broadcasters, an increase in oversight of the press as well as adjustments to rules surrounding how much Australian content must be aired.

Southern Cross Media shares (SXL) have again traded higher and are now above $1.70.

Earlier today, it was reported in The Australian, that Communications Minister Senator Stephen Conroy was considering dropping changes to the 75% reach rule effectively scuttling any proposed merger between Nine and Southern Cross.