THE Sunday Tribune has denied that its editor, Mr Peter Murtagh, has resigned. However, it is understood that Mr Murtagh, who became editor at the paper just, over two years ago, has agreed severance terms with the Tribune board and will resign at the end of this month, leaving at the end of August.

The newspaper's financial controller, Mr Frank Cronin, yesterday categorically denied that Mr Murtagh was resigning or had resigned.

Asked if Mr Murtagh would be leaving at the end of August, he said: "That is a long time away. Who can say?"

Mr Cronin said a board meeting was held yesterday morning at which Ms Helen Callanan was appointed deputy editor. That was the only item on the agenda. There was no letter of resignation.

Mr Murtagh was unavailable for comment as he is on holidays. Mr Gordon Colleary, chairman of the Tribune board, was also unavailable.

Mr Cronin's denial came in the wake of a story in the Irish Independent yesterday, which said Mr Murtagh had decided to resign. The story had been denied to The Irish Times on Monday night by both Mr Colleary and Mr Cronin.

Independent Newspapers is a 29.9 per cent shareholder in the Tribune Newspapers, the company which publishes the Sunday Tribune and has kept the ailing company going with regular loans.

The newspaper's circulation has been badly hit by competition from British imports and finding a successor to Mr Murtagh will be a difficult task. Several names have been mentioned, including Mr Matt Cooper, business editor of Irish Independent and Mr Alan Byrne, editor of the Racing Post.