Rupert Murdoch's News Corporation will close its tabloid News of the World after this Sunday's edition, as a result of an escalating phone hacking scandal, James Murdoch said on Thursday.

James Murdoch, son of Rupert Murdoch and Chairman and Chief Executive of News Corporation, Europe and Asia.

"The News of the World is in the business of holding others to account," the deputy chief operating officer of News Corporation told staff. "But it failed when it came to itself."