Phone hacking was 'widely discussed' at the News of the World and former editor Andy Coulson sought to cover it up, according to the defunct British tabloid's disgraced former royal correspondent.
Clive Goodman alleged that Mr Coulson had offered to let him keep his job if he agreed not to implicate the paper in hacking when he came to court.
Mr Goodman was jailed for hacking in 2007. Andy Coulson went on to work for British Prime Minister David Cameron.
Meanwhile, News Corp executive James Murdoch is likely to be recalled to testify at a British government committee after doubts were raised about evidence he gave previously on phone hacking, a committee MP has said.
Parliament's media committee is also set to publish 'devastating' revelations soon, which will raise new questions over the scandal engulfing his father Rupert Murdoch's media empire, Tom Watson said.
Some former employers of News Corp's British newspaper wing News International would be recalled to give more evidence and James Murdoch could be recalled afterwards, he said.
'There is contradictory evidence that the committee is determined to get to the facts on, which is why we are inviting them back and why it would be likely that James Murdoch will come back after (former News International employees) Crone and Myler,' said Mr Watson.
Colin Myler, the last editor of the News of the World, which was closed last month amid the scandal, and Tom Crone, the former News International legal manager, contradicted James Murdoch's evidence.
James Murdoch told the 19 July committee that he was unaware of an email that could suggest knowledge of hacking at the Murdoch-owned News of the World tabloid went wider than one rogue reporter.
He said that, as chairman of News International, he did not know about the email when he authorised a payout to Gordon Taylor, head of the Professional Footballers' Association, over hacking.
But Mr Myler and Mr Crone broke ranks on 21 July to say James Murdoch's recollection of events in 2008 was 'mistaken'.
The long-simmering scandal erupted into a full-blown crisis last month when new allegations emerged that an investigator working for the News of the World may have hacked the phones of a murdered teenager and relatives of dead British servicemen.
