Lawrence.com

Pasadena, Calif. — CNN has agreed to a four-year contract extension with talk show host Larry King that keeps him as the cable network's highest-paid personality.

The contract pays King nearly $7 million a year in base salary, but stock options and other incentives could make it worth much more, according to an executive close to the negotiations who asked for anonymity.

The New York Post said that the deal was worth $56 million.

"For the viewers, for Larry, for us, for everybody, it's a great decision to know that Larry will be there in that position for years to come," said Jamie Kellner, chairman of CNN parent Turner Broadcasting.

A spokeswoman for King, Erin Sermeus, confirmed the deal was essentially done but had no further comment. King was running with the Olympic torch Tuesday in Los Angeles.

The genial, 68-year-old King is not known as television's toughest interviewer. But his show, which airs nightly at 9 p.m. ET, is a popular stop for newsmakers.

King and Fox News Channel's Bill O'Reilly are in close competition to be the highest-rated cable talk show host in prime-time.

King's agreement to extend a contract that expired later this year comes at a time of heightened competitiveness in cable news. Fox earlier this month poached Greta Van Susteren, who had been host of a CNN program that aired before King, and is giving her a 10 p.m. show.

MSNBC has expanded its prime-time talk lineup by giving former GOP presidential contender Alan Keyes his own show.

An NBC spokesman denied a broadcast report that the network had dangled an offer to bring King to MSNBC and CNBC. Although King had breakfast with Fox News Channel Chairman Roger Ailes in early October, that network also said it didn't pursue King.

"Larry King's ratings are on the way down," said Kevin Magee, vice president of programming at Fox News Channel. "Bill O'Reilly's ratings are on the way up. Of these two guys, I'm very happy with the one we've got."