Is Murdoch planning to bring back News Of The World?

Writing for the US site NSFWCorp, Tom Watson says:

For some years, News Corporation insiders have shared detailed company information with me. It usually involves the bribery and hacking scandal but recently it’s widened to include more broad information.

Now one source tells me that Murdoch intends to resurrect the old News of the World title, as an online only property, to compete with Mail Online (the website of the Daily Mail).

“‘It’s the place where they want to put the Page 3 girls when they’re put out to pasture from the Sun,” my source told me. So it sounds classy.

The insider also claims executives are split as to whether the move is sensible at such a fragile time for the newly re-organised company.

But would Murdoch really have the gall?