New Zealand On Air chairman Neil Walter is expected to stand down soon with National Party official Stephen McElrea a contender to replace him, television industry sources say.
The two men have been at the centre of a controversy over the timing of Bryan Bruce's documentary on child poverty screened four days before the election, claiming it opened the funding quango to accusations of bias.
McElrea complained to NZ On Air which sent TV3 a terse letter of complaint but TV3 went ahead anyway.
Critics have complained that NZ On Air, far from ensuring its reputation for independence, overreacted.
Walter is due to retire soon and it is understood McElrea has indicated interest to the Government in the role or in being appointed as deputy chairman, two production industry sources said.