Media mogul Rupert Murdoch arrived in London this afternoon to tackle a crisis that has spiralled beyond a phone-hacking scandal at one of his papers and threatened to scupper a multi-billion-dollar deal.

Mr Murdoch was photographed reading a copy of the last ever edition of News of the World, which his News Corp empire axed just a few days ago, as he swept into the company's Wapping headquarters by car.

Wearing a white panama-style hat, he ignored reporters massed at the entrance, focusing his attention on the newspaper he bought in 1969 as the cornerstone of a vast media empire.

His car sped out of the complex again 15 minutes later but it was not clear what meetings he had planned

The Australian-born American, one of the world's most influential men, has flown in to personally oversee his company's handling of a crisis in which senior executives are implicated.

A senior police officer told the Sunday Telegraph today that illegal voicemail hacking was "standard practice" at the News of the World and then covered up by executives.

Assistant Police Commissioner John Yates said senior News of the World executives had failed to cooperate with police during a 2005-06 investigation into the practice.

"The only reason you now have a new investigation is because the News of the World produced new material and new evidence," he was quoted as saying.

He said the new investigation had been prompted by "material that was completely available to them in 2005-06".

"It makes their assurances in 2005-06 look very shaky."

He acknowledged that the reputation of London's Metropolitan Police had been "very damaged" by its failures to investigate more fully, adding: "I have regrettably said the initial inquiry was a success. Clearly now that looks very different."

In the coming days police will question News International chief executive Rebekah Brooks, the Sunday Telegraph reported, quoting a senior News International source. Police declined to comment.

Meanwhile, the last edition of the paper hit newsstands this morning.

The best-selling newspaper signed off after 168 years with the headline: “Thank You & Goodbye”.

Copies are selling well, said newspaper vendor Jean Natella at London Bridge Station.

"I think it's a shame because they've done a lot of good, they've riddled out a lot of, let's say, nasty people," she said. "It's unfortunate that a few people have brought it down. But they have got no choice because they condemned others so they have got to show they are accountable."

Photographs posted on micro-blogging site Twitter showed journalists gathered round the red top’s last front page as the printing presses prepared to roll.

It was the climax of an emotional day at the Sunday tabloid’s Wapping headquarters.

After an intense day in the office, the final edition highlights the paper’s long history of successful campaigns and dramatic revelations.

On its back page are two quotes.

The first, from George Orwell's Decline of the English Murder written in 1946, reads: "It is Sunday afternoon, preferably before the war.

“The wife is already asleep in the armchair and the children have been sent out for a nice long walk.

"You put your feet up on the sofa, settle your spectacles on your nose, and open the News of the World."

The second quotation, from Jeanne Hobson, Lymington, Hants, and written this year, states: “I have read this paper since I was old enough to read newspapers.

“I’m 68 now. I cannot imagine Sundays without you.

"I will always remember the News of the World for the good things you have brought to light. I am sad to say goodbye to my Sunday favourite."

As the paper went to press, News Corporation boss Rupert Murdoch continued to give his full backing to Ms Brooks, insisting she had his “total” support.

“We already apologised,” he told reporters in Sun Valley, Idaho, where he has been attending a media conference.

“We’ve been let down by people ... the paper let down its readers.”

Ms Brooks, a former editor of the paper, has remained defiant as the scandal engulfing the tabloid gathered pace in recent weeks.

Resisting calls for her resignation, she has told MPs she had “no knowledge whatsoever” of hacking when she edited the Sunday paper.