[Scarlett.]

PAUL O'Grady is NOT taking his show to Sky after bosses refused his demands for an extra £1million.

The Scouse chat host was being lured away from Channel 4 as his budget was to be cut.

Sky were close to a deal for a show on Friday and Saturday nights - but at the 11th hour O'Grady, 54, demanded more cash for his production company after discovering the show would have to be filmed in High Definition.

He was looking for another £1million to pay for HD cameras at the studios where he films. But bosses refused.

A source said: "Sky thought it was in the bag but then O'Grady started saying they needed more cash if it was going to be in HD.

"Sky bosses said no because they were under the assumption that that was part of the deal."

The Lily Savage star is now hoping ITV or BBC will take his talkshow - but still plans to work with Sky on another project in the New Year.

He has spoken publicly of how C4 wants to slash his show's production costs when his current deal finishes at the end of the year.

Paul said recently: "We can't make it on that budget - it would be just me and the dog."

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