ITV bids £250million to steal Neighbours from the BBC

But the friendly Australians of Ramsay Street could be moving to ITV, which has bid up to £250million to run the show in future.

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The BBC, which currently pays about £25,000 per episode, is believed to have offered up to £70,000 a show in the hope of keeping Neighbours.

But ITV chiefs have laid the blockbusting equivalent of £100,000 per episode on the table.

Winning the show will be a major coup for ITV's new executive chairman Michael Grade, who oversaw Neighbours when a controller at the BBC.

It was at his daughter's suggestion that the BBC moved the second showing to 5.35pm, which proved a ratings winner.

Part of his strategy is to spend big money on shows which are seen as critical in helping to turn around ITV's struggling fortunes.

Fremantle Media, the company which owns the programme, is trying to secure a deal for the next five to ten years, starting from 2008. ITV would end up paying in the region of £250million if it sealed the deal for a decade. The BBC, however-has been incensed by Fremantle Media's handling of the bidding.

It is poised to walk away from negotiations, telling rivals they would be "foolish" to agree to the company's "unrealistic and greedy" demands.

The BBC's director of acquisitions George McGhee said: "If a deal is not reached in the very, very near future, we will withdraw the money and move it elsewhere. We quite possibly will (move it by the end of this week)."

Neighbours on any other channel than BBC1 would come as a shock to viewers, who have grown up with twice daily showings on the network.

Many fear the prospect of the effect of advertising breaks if it switches to ITV.

The loss would be a massive blow to the BBC, where it pulls in about

2.6million viewers in its 1.40pm time slot and a further 2.8million when it airs again at 5.35pm.

But the BBC, trying to cut costs after a lower than expected licence fee settlement, does not have the cash to get involved in a price war for Neighbours.

It recently lost out to ITV for the FA Cup and England home international games.

Channel 5 is also believed to be lining up a big bid for Neighbours.

It already boasts Home and Away, which it won from ITV in 2000.

Fremantle Media is owned by Germany company RTL, which also owns Channel 5.

The company has ruffled feathers in the broadcasting industry with its aggressive approach to the deal.

But the proven formula of Neighbours, which on its combined ratings is TV's most popular daytime show, remains a very desirable prize.

The Australian soap, which made stars of Kylie Minogue and Jason Donovan, started in 1985.

At its peak in the late 1980s it attracted audiences of over 18million.