Rupert Murdoch has already seen "draft designs" of a Sunday version of The Sun and the paper could launch in April, a Labour MP has claimed.
Tom Watson, who has been a constant critic of Murdoch's media empire in the phone hacking scandal, said that a source at News Corporation informed him that the new Sunday paper is getting close to launch.
He said that Murdoch has already seen proposed designs for The Sun on Sunday, and that the paper will launch this spring at a cheap price.
Watson, a member of the Commons culture, media and sport select committee, tweeted: "A News Corp source tells me Rupert Murdoch has seen the draft designs of the Sunday Sun with a launch in April at a discounted price."
Later, he added: "So ten years to the month when @rupertmurdoch's people listened to an abducted girl's phone, he wants to relaunch News of the World."
His remark was in reference to the revelations that the News of the World had intercepted the voicemails of murdered schoolgirl Milly Dowler after she went missing in 2002.
There has been widespread speculation that Murdoch's News International UK publisher will launch a Sunday version of The Sun to replace the News of the World, which was shut down last July at the height of the hacking affair.
Last Summer, former Sunday Times editor Andrew Neil claimed that The Sun on Sunday was already "being pitched" to advertisers by News International.
Sir Martin Sorrell, boss of the largest marketing services company in the world, has said that the Sunday newspaper market has worsened since the News of the World's closure, as competition has stagnated.
The final edition of the 168-year-old tabloid on July 10 last year shifted around 4.5 million copies, its highest sales since 1998. The paper's official circulation at the time was 2.67m, which was likened to switching off Channel 4 on a Sunday.
After the closure, other newspaper groups have benefited, adding around 2m circulation across a range of titles, but that still means an estimated 700,000 Sunday paper sales have disappeared entirely.
The domain name www.sunonsunday.com was registered by an unknown company last July, with sources indicating that it was bought on behalf of News International.
Should Watson prove correct, the launch suggests that Murdoch's News International feels its "time for atonement" has expired since it axed the News of the World.
The low cover price of the Sun On Sunday is thought to be aimed at helping News International regain market share on Sunday tabloid rivals.
The Guardian reported sources last year as saying that former News of the World editor Victoria Newton will oversee The Sun on Sunday, while Lisa Collins is being lined up to oversee the Saturday edition of The Sun. Dominic Mohan would edit the paper from Monday to Friday.
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