Gay presenter Graham Norton has signed a two-year, £4 million deal to stay at the BBC.

According to the Sun, he accepted a pay cut of £500,000, having previously been on £2.5 million a year.

The star, who has said it is “rude” to publish salary details, will present this year’s Eurovision Song Contest, television coverage of the Baftas and Over The Rainbow, in which Andrew Lloyd Webber searches for a Dorothy to appear in The Wizard of Oz.

There had been rumours he would return to Channel 4 to take over Paul O’Grady’s slot.

The newspaper also reported that sources had said BBC director general Mark Thompson was considering ditching Jonathan Ross, who offended gays with an adoption quip last year.

Ross is the BBC’s best-paid star. His current three-year deal with the corporation is thought to be worth £16.9 million.

It ends in June, although he has said he would be willing to take a 50 per cent pay cut.