It may not be the greatest newspaper war of all time, but it has the markings of an important newspaper war at an important time for newspapers, pitting two titans of the old medium against one another in one of the world's most important media cities, London.

But now there are signs that this newspaper war may be over before many thought, brought to an end by the harsh realities of Britain's sinking media economy.

Or maybe not, considering the personalities involved.

On one side is British press baron Lord Rothermere, head of the Daily Mail & General Trust (DMGT), parent of Associated Newspapers, which publishes the Evening Standard, for years the only paid national afternoon daily serving London. On the other is Rupert Murdoch, whose News International publishes the Times of London and the down-market Sun, among others.

In 2006, Murdoch launched the free London Paper in a direct challenge to the Standard, and Associated Newspapers promptly responded by launching the free London Lite. Quite suddenly London streets were filled each afternoon with news vendors handing out copies of each to commuters and whoever else would stretch out a hand. Some 900,000 copies are now handed out daily.

What could be a break in this war came last week when the Guardian newspaper reported that DMGT had approached News International to discuss ending the rivalry. The Guardian reports that DMGT was sent packing, but the report nonetheless reopened a two-year-long discussion by Britain's media commentators, much of it about how futile the struggle appears to be. Stephen Glover, a columnist for the Independent, calls it ridiculous.

“Both are losing millions of pounds. Neither makes a useful contribution to journalism,” he writes. “Can even the mighty Murdoch continue to blow millions of pounds on such a stupid cause?”

Indeed, The London Paper reportedly lost $29 million in its first 10 months alone, and now Britain is officially in recession, with spending on newspapers forecast to fall 4.9 percent this year, according to ZenithOptimedia.

As it is, the parents of both are cutting jobs across all their papers. Associated is also paring back the number of editions it publishes of the Evening Standard from three to two.

But neither side is saying much, at least publicly.

“I believe we’ve had discussions with News International in the past, which is no surprise really as they struggled from day one to make a success of The London Paper,” said Steve Auckland, managing director of London Lite.

And it was not DMGT that came calling, contrary to reports, but News International that at one point approach DMGT, says DMGT. Auckland says he expects they will be coming around again quite soon. News International remains characteristically quiet, offering no comment on the situation.

But whether either side is willing to give in would seem doubtful, since both have far more at stake than just the two papers. Murdoch for one has larger ambitions, and they reportedly include launching a free paper in the morning, and that would put it directly up against Metro, a profitable free morning paper also owned by Associated. Associated needs to block that plan.

Writer Roy Greenslade, media columnist for the Guardian, says: “This means that, for the time being, neither publisher is going to walk away."