“Clearly there was complete collusion between the Secretary of State and his office and News Corp on a bid where he was supposed to be impartial, which is why he should not be in his job.
“Either he didn’t know what was going on with an £8bn bid - in which case he shouldn’t be in his job and he should be sacked - or he did know and he is covering up and blaming everybody else, in which case he should be sacked.”
However, Mr Hunt remains confident that his reputation will remain intact when he gives evidence to the Leveson inquiry later this summer.
“Mr Hunt is confident his evidence will vindicate the position that he has behaved with integrity on every issue,” a spokesman for the Culture Secretary said.
“It has already been made clear that when Fred Michel has claimed in e-mails to be speaking to Jeremy Hunt that was not the case.
The official added that in July 2011 Mr Hunt had written to Ofcom, the media regulator, to take further advice about the impact of phone hacking on the BSkyB bid.
The Department for Culture, Media and Sport has stressed that Mr Michel has already admitted that the only contact he had was with the Culture Secretary’s adviser, Adam Smith, who resigned last month.
However, Dennis MacShane, the Labour MP for Rotherham, said: “It’s over for Jeremy Hunt. What we found out [at the inquiry] is what everyone half knew in the House of Commons, that he was openly colluding with the Murdoch empire on the question of BSkyB.
“Now his position is untenable and when Parliament gets going next week, I think that’s going to be the case.”