The UK Film Council (UKFC) and the British Film Institute (BFI) could be merged into one single organisation as part of proposals unveiled by the Department for Culture, Media and Sport (DCMS).

Film minister Siôn Simon announced the plans, which would result in a streamlined body that would be able to increase investment in film and services rather than infrastructure, and provide better support and promotion for the UK film industry. The remit of both the UKFC and BFI would not be altered as a result of the merger, which would also include guiding the film industry through a transition to digital technologies and the preservation of UK film heritage.

Simon said: "Supporting film to help the UK industry reach its international potential as an art form as well as a business remains a priority for government. That's why we want to look at how best to direct our support. "There are practical issues which we need to resolve to ensure that this proposed merger brings about the benefits we want without impacting on the work currently done by the BFI and UKFC. DCMS will now work closely with both BFI and the UKFC to deliver a better service for film."

A project board incorporating representatives from the DCMS, UKFC and BFI will now meet to examine the proposals and to develop a new structure for the governance of the new organisation. It is expected that the board will complete its work by the end of the year.