Broadcaster ITV is considering entering into a joint venture valued at £1 billion with BBC to acquire half of broadcaster UKTV, the Telegraph newspaper has reported. 

According to terms of the joint venture, BBC has the right to buy out its partner at a set price before the end of next week, the newspaper reported. 

The companies are attempting to create a deal that would compete with entertainment company Netflix, the report said.

The opportunity to seal the deal will close within two weeks, according to the report. 

UKTV, whose channels include Dave and Gold, is an independent commercial joint venture between BBC Worldwide and Discovery, which earlier this year completed its acquisition of US broadcaster Scripps Networks Interactive, the former owner of UKTV. 

Discovery is working on an alternative plan for breaking up UKTV, the Telegraph said.

The BBC had earlier approached Sky as a potential partner in the joint venture but the talks did not work out, the report added. 

In November, the Telegraph had reported that BBC's commercial arm was considering a £500m bid for full control of UKTV. 

ITV is currently in the middle of a strategic review under new chief executive Carolyn McCall, who has previously said she would provide investors with an update of the review at the group's half-year results in July.