Fox is becoming even more of a family affair. 

Fox News has confirmed Rupert Murdoch will step down as chief executive of the media-entertainment conglomerate 21st Century Fox, handing the job to his son James.

The 84-year-old tycoon laid out his succession plan this week, insiders say, which will see his chief executive role passed down to his son James while his other son Lachlan becomes executive chairman.

“Rupert Murdoch is expected to relinquish the CEO role but remain executive chairman and continue to drive the company's agenda,” an unnamed source told reporters.

“Lachlan Murdoch is expected to be named executive co-chairman and he will work in close partnership with James Murdoch.

“The two of them will be a team and run the company together.”

CNBC is reporting that the change will take place toward the end of 2015 or in early 2016.

James Murdoch will be in charge of day-to-day management at Fox, working “in tandem with his 43-year-old brother Lachlan and his father”, CNBC says.

Fox News will remain under the control of its president Roger Ailes, “reporting directly to Rupert Murdoch”, reports say.

The company’s COO Chase Carey will reportedly step down, meaning Fox would no longer have any senior management figures outside of the Murdoch family.

The promotion of James Packer is seen as the end of a ‘rehabilitation’ period for the 42-year-old mogul.

James Murdoch was chair at News Corp’s subsidiary News International and Sky when a tabloid phone-hacking scandal engulfed the family and News Corp in 2012.

James was the tabloid publisher New International’s chairman when journalists at The News of the World and News International UK, hacked phones and bribed officials.

The scandal led to the newspaper’s closure, but James was eventually cleared of any wrongdoing.

Saudi Arabia’s Prince Alwaleed bin Talal, who close to the Murdoch family and holds a 6.6 per cent stake in Fox, has been one of James Murdoch’s most powerful supporters.

“James is a giant!” the billionaire prince told Reuters this year, saying James clearly understands the digital era, in a way his father may not.

“I really love him!” Prince Alwaleed bin Talal said.