Peter Chernin, Rupert Murdoch's right-hand man at media conglomerate News Corp, is pondering whether to leave his post next year when his current contract runs out, reports the Los Angeles Times.

A number of unnamed sources say Chernin - currently president and COO at News Corp - is not interested in staying at the firm after his five-year contract expires in June 2009. Some sources say Chernin, 57, is keen to move on and possibly start his own media company before he reaches 60, while others say he will sign a shorter, two- to three-year contract.

A News Corp spokesperson confirms that Chernin's current contract ends at the end of the company's 2009 fiscal year but declined to say whether he will renew, sign a new deal or leave.

Chernin has spent 12 years at News Corp and presided over some the firm's biggest deals, including the 2005 acquisition of MySpace and the creation of Hulu with NBC Universal. During an earnings conference call with investors last week, Chernin said talks about his contract are "constructive", while Murdoch says the discussions are "constructive and friendly".

In the past, Murdoch has said that eventually he wants his children to run his media empire, which also owns the Wall Street Journal, Sky Italia and the Fox television network. Currently, James Murdoch is in charge of UK satellite firm BSkyB, while Elisabeth Murdoch is CEO of her own TV production company, Shine Limited, and is a former MD of BSkyB. Lachlan Murdoch, who worked closely with Chernin, left News Corp in 2005 and moved his family to Australia where he launched private investment firm Illyria. However, he is still a News Corp consultant and director.

Chernin's departure would come while the company is in a difficult position financially. Earlier this month, the firm posted a 9% drop in operating profit in the last quarter, blaming weaker advertising sales for its TV channels and lower revenues at its film unit. News Corp stock has fallen 65% in the past 12 months, according to Reuters.

The LA Times also notes that Chernin would struggle to match his pay packet given the global economic crisis. Under his current contract, Chernin earns a base salary of less than USD3.8m and is eligible for annual bonus payments of as much as USD25m. For the fiscal year ending in June, he took home USD28.8m.