Sack James, Elisabeth Murdoch told her father

ELISABETH MURDOCH advised her father Rupert to force his son James to stand down as chairman of News International over the phone hacking scandal, Vanity Fair has reported, in an 11-page article revealing the internal politics of one of the world's most powerful families.

According to Vanity Fair: "Elisabeth blamed her brother for allowing the phone-hacking crisis to spiral out of control… She said [Rebekah] Brooks and [Les] Hinton needed to resign, and that James needed to take a leave."

Rupert is understood to have been receptive to the idea, as his relationship with James had become fraught. Both he and Elisabeth (above) suggested to James that he take a ‘leave' from his duties.

However, James was allegedly "smouldering" at being held responsible for an issue that predated his involvement and Rupert contented himself with the resignations of Rebekah Brooks and Les Hinton.

The article claims that Rupert hoped James would succeed him as CEO of News Corp: "Rupert was seriously considering giving up his CEO title and wanted [Chase] Carey to ‘groom' James for the job."

The issue of succession had proved so much of a strain that all of the Murdoch siblings - Lachlan, Prudence, James and Elisabeth – had been in "family counselling" with a psychologist, according to Vanity Fair. The siblings also discussed James' poor relationship with his father and resolved that "together the kids could hold Rupert to account to be a mentor to James and not undermine him".

News Corp has declined to comment. ·