Over the past week, there were growing claims that the paper had authorised hacking into the mobile phones of murdered school girl Milly Dowler and the families of 7/7 bombing victims.
Over its 168 years in circulation the News of the World became Britain’s biggest selling Sunday paper, reaching up to 2.8 million sales a week.
The government have denied any involvement in the decision to close the paper.
Murdoch has said all proceeds from the final issue will go to good causes. All the advertisement space will be given to charities and other good causes.
Rumours have begun to spread about The Sun becoming a 7 day a week paper to replace NoW. News International has refused to comment on the issue.
It is still unclear on what will happen to the paper’s 200 employees, most may be given the opportunity to apply for jobs elsewhere in the company, others may be made redundant.
The investigations into the phone hacking will continue to be carried out by police, which includes contacting over 4,000 people.
The latest accusations follow a recent history of phone hacking scandals aimed at the News of the World. In 2007, the Royal Editor Clive Goodman and private investigator Glenn Mulcaire were jailed for hacking the phones of Prince Williams’s aides.