Rupert Murdoch's STG11.7 billion ($A19.3 billion) bid to take full control of Sky is to be referred to the competition regulator for further investigation, the UK government says.
Culture Secretary Karen Bradley has been assessing thousands of responses following a consultation about the proposal from 21st Century Fox.
After weeks of deliberation, Bradley on Tuesday confirmed she intends to ask the Competition and Markets Authority (CMA) to conduct a fuller investigation into the bid on the grounds of media plurality.
Bradley said there is a risk, "which is not purely fanciful," that the merger would not be in the public interest.
Murdoch's media group is trying to buy the 61 per cent of Sky it doesn't already own. UK broadcast regulator Ofcom has previously said the takeover could give the Murdoch family too much influence over Britain's media.
Murdoch's 21st Century Fox agreed to take full control of Sky in December.
The Murdoch family and 21st Century Fox have faced considerable opposition to the Sky deal in the UK. Parliamentarians including Tom Watson, Vince Cable, and Ed Miliband have been vocal opponents of the deal, as have pressure groups Avaaz and Media Matters.
They have pointed to the behaviour of Fox News in the US as evidence that there needs to be a fuller investigation into whether the Murdochs are fit to own a combined company, and whether it would comply with the relevant broadcasting standards.