Regional publisher National World has launched the next phase of a potential £600m bid to buy the Daily Telegraph, according to reports.

Sky News has claimed the strike-hit publisher is set to appoint advisers Cavendish Capital Markets and Peel Hunt to help raise the required money for a takeover of the national broadsheet.

National World confirmed last month it is “considering participating in a sale process for Telegraph Media Group”, although the venture comes amid a pay dispute with its journalists that has led to strike action and a summer of cuts affecting more than 50 journalists.

It was revealed in June that TMG, which runs the Daily Telegraph and Sunday Telegraph, was set to be put up for sale after the company went into receivership following a row over nearly £1bn of unpaid debts involving its owner the Barclay family.

National World executive chairman David Montgomery, pictured, previously stated his interest in the Telegraph in 2019, prior to his takeover of JPIMedia.

He also touted a potential bid to buy rival publisher Reach plc last year.

The Sky report states: “The two firms will work alongside Rothschild, which is providing corporate finance advice to Mr Montgomery, and Dowgate Securities, its existing broker.

“The appointments underline Mr Montgomery’s determination to be a serious contender in an auction which is already generating significant interest from investors in the Middle East and the US.”

HTFP has approached National World for a comment on the claims.