A much delayed deal has helped save Channel Nine from the brink of collapse allowing the television channel to stay on air.

It is believed that Nine chief executive David Gyngell and chairman Peter Bush formulated a deal that offered $110 million to Goldman Sachs and other minor stakeholders of the company. The negotiations for the deal took place at office of law firm Gilbert + Tobin.

The absence of such a deal would have pushed the company to closure forcing managers to scrap businesses.

"We're fighting hard to save a great business. I think we'll have some sort of outcome to discuss," said Mr Gyngell. He described the negotiations over the deal as a "vigorous debate'' relating to the valuation. The agreement might be announced officially on Wednesday.

Experts say that the company as well as the shareholders knows that an agreement is needed to keep the channel running. Two major groups of lenders that have invested more than $3.2 billion, are carrying out negotiations on the matter and the future of the channel is dependent on their agreeing to the deal.

If a deal is not finalized with the groups by Wednesday, the directors of the company will have to call in the corporate undertakers or face personal liability for the company's debt.