Rebekah Brooks will be questioned by detectives over what she knew about the hacking scandal, it emerged last night.
The News International chief executive and former NOTW editor will be spoken to as a witness rather than a suspect, company sources said, but is expected to be interviewed under caution within weeks.
In a letter to MPs on the Home Affairs Select Committee yesterday, Mrs Brooks insisted she had "no knowledge whatsoever" of phone hacking in the case of Milly Dowler or "in any other cases during my tenure".
It also emerged yesterday that the actor Hugh Grant, the parents of Milly Dowler and other interested parties will meet David Cameron and Nick Clegg tomorrow morning at the Cabinet Office.
Last night John Yates, who headed the original Scotland Yard investigation into phone hacking, which led to the successful prosecution of NOTW private investigator Glenn Mulcaire and Clive Goodman, the paper's former royal reporter, admitted he had failed victims by not conducting a wider investigation. He told The Sunday Telegraph: "I have regrettably said the initial inquiry was a success. Clearly, now that looks very different."
In another development, the Church of England threatened to pull its £4m of investments from News Corporation if "senior managers" are not held to account.
The church's Ethical Investment Advisory Group said it had written to News Corp describing the behaviour of the NOTW as "utterly reprehensible".