Staff were informed about the changes in a sombre meeting yesterday, and the proposals will be decided upon in around one month.

City Talk said there are no plans to lose jobs or move any well-known presenters.

The station currently features broadcasters including Dean Sullivan, Simon O’Brien and Trish Goddard.

The recession has meant fewer advertisers are approaching newly-established stations to promote their products, leading to challenging market conditions.

Previously, radio stations were not allowed to change format until two years of operation, but Ofcom has waived that rule in the tough economic climate.

The proposal is not guaranteed to be approved as rival stations can object to the move if they wish.

Part of independent station Radio City, City Talk is one of only three commercial talk-based UK radio stations.

Travis Baxter, managing director of Bauer Media, said: “We believe the proposed changes will keep a significant part of the original character of the station intact, while maintaining the current competitive dynamic in Liverpool and increasing listener choice overall.”