People who illegally download films and music will be cut off from the internet under Government plans to tackle online piracy.

Internet service providers (ISPs), including BT and Virgin Media, will be legally required to take action against users who access illegal material.

Under draft proposals to be unveiled next week, users suspected of wrongfully downloading films or music will be first sent a warning email to stop.

For a second infringement, they will receive a suspension - and if caught a third time, their contract will be terminated.

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Broadband companies who fail to enforce the "three-strikes" regime would be prosecuted and suspected customers' details could be made available to the courts.

A similar system already operates in France and the US, and the Government believes it could work successfully in the UK.

The Government has yet to decide if information on offenders should be shared between ISPs.

Six million broadband users are estimated to download files illegally every year in this country in a practice that music and film companies claim is costing billions of pounds in lost revenue annually.

These people commonly use a software programme called a torrent, which allows them to illegally share files with other users on the internet.

The torrent downloads tiny sections of a song or film file from several different sources making it difficult to trace.

Any legislation would not be aimed at prosecuting these individuals, but the internet providers who fail to stop their activity.

Britain's four biggest internet providers hope to avoid the legislation by reaching an agreement with the Government to self-regulate.

BT, Tiscali, Orange and Virgin Media have already been in talks with Hollywood studios and distributions companies for six months over a voluntary scheme.

A spokesman for the Internet Service Providers Association said: "Every right-thinking body knows that self-regulation is the much better option in these areas."

But ministers will make an explicit commitment to legislate with the launch next week of a Green Paper on the creative industries, entitled The World's Creative Hub.

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