A UK company has announced a solution that could solve the upcoming high-definition war between the rival Blu-ray and HD DVD disc formats.

London-based New Medium Enterprises (NME) has developed a low-cost, multilayer DVD disc that can store Blu-ray content on one layer and HD DVD content on another.

The key benefit of the disc is that it can be produced for around 5p, just double that of current DVD discs. Blu-ray and HD DVD discs cost up to five times more than DVDs to produce due to low yields, according to major disc producer and NME’s partner, ODMS, which will launch the new disc early next year.

Warner recently proposed a similar approach and filed for a patent but NME has denied there is any conflict.

NME chief technology officer Eugene Levich claims the technologies are " complementary". If the solution proves workable and popular, then it will end the looming threat of another VHS versus Betamax-style war.

Consumers will be able to buy discs that will play in whatever high-def player they buy and movie studios will save money by being able to put movies in both Blu-ray and HD DVD onto single discs.