Ten Network Holdings Ltd. (TEN.AU) chairman Nick Falloon have agreed to set down from his post to resolve pending issues with new shareholder James Packer.

Mr. Falloon would immediately vacate his post after the company's annual shareholder meeting in December "if this would assist in the resolution of the outstanding issues between the company and Messrs Packer and Murdoch," Ten said in a report of the Wall Street Journal.

Mr. Packer and partner Mr. Lachlan Murdoch, non-executive director of News Corp. (NWS) were informed of this development and the vacancy of this position.

The WSJ report further said quoting an unidentified source that "Mr. Packer and Mr. Lachlan were not pushing for Murdoch to become Ten's new chairman but have rejected a request by Ten for veteran board member Jack Cowin to take on the roll."

Packer and Murdoch have also sought to acquire three board seats that would represent the 18 percent shareholding in the company.

However, the Ten Board has not yielded to this request and discussions are still being conducted at this time.

Network Ten also announced that it would restructure the composition of its Board of Directors as concerns of competitive disruptions arose recently with the entrance of James Packer and possible co-investor Mr. Lachlan Murdoch into the company.

In a statement issued to the stock exchange, Network Ten said it had decided to make the chairmanship non-executive even before Mr. Packer's purchase of some shares in the company.

The company also said the company would also expand the number of its directors from eight to ten.

The Australian Competition and Consumer Commission has begun an informal review of Mr. Packer's acquisition as it may hinder the competitiveness in the industry.

Reports indicate that Mr. Packer nearly owns half of Consolidated Media Holdings, which owns half of Fox Sports and a quarter of Foxtel. Mr Murdoch, on the other hand, is a director of News Corp., which partly owns these sports broadcasting companies.