Media ownership shake-up on the cards

Federal cabinet has given the nod to a shake-up of media ownership laws.

The "two out of three rule" will be scrapped allowing media outlets to own radio, TV stations and newspapers in a single market, the ABC reports.

The changes could result in News Corp merging with the Ten Network and Fairfax and Nine Network joining.

Cabinet has also ticked off on abolishing the "reach rule" which prevents one media company from broadcasting to more than 75 per cent of the nation.

"I'm aiming to not let the grass grow on media reform," Communications Minister Mitch Fifield told ABC Radio.

The draft legislation is expected to go to the coalition party room on March 15.

"There is the opportunity to bring Australia's media laws into the 21st century to make sure that they reflect not the analogue world, but to capture and cater for the world that we live in today," Senator Fifield said.

Labor's communications spokesman Jason Clare said the opposition supported ending the "reach rule" but removing the "two out of three rule" was more controversial.