BBC News said the broadcaster had received a letter from United States President Donald Trump on Monday threatening legal action over the editing of a documentary broadcast a week before the US presidential election.
BBC Chair Samir Shah apologized for an "error of judgment" in editing the speech in a Panorama documentary, following the resignations of the BBC's boss and head of news.
Trump's lawyers said that the BBC must retract the "Panorama" documentary by November 14 or face a lawsuit for "no less" than one billion dollars, according to the letter.
"We will review the letter and respond directly in due course," a BBC spokesperson told Reuters in an email.
Shah, the chairman of the publicly-funded broadcaster, said in an interview with BBC News that it was "considering" how to respond to Trump's communication.
When prompted about whether Trump would be suing the BBC, Shah said: "I do not know that yet, but he's a litigious fellow, so we should be prepared for all outcomes."
Shah acknowledged the 'misleading' edit
Shah said the BBC acknowledged the Trump speech edit gave a misleading impression and should have been handled more carefully. He noted the issue had been reviewed internally earlier this year, but said the broadcaster should have taken formal action at the time.
"It is absolutely clear the BBC must champion impartiality," Shah wrote to British lawmakers, adding that the broadcaster is committed to restoring public trust and ensuring its journalism meets the highest standards of fairness.
On the Trump edit, he said after further deliberation, the BBC accepted that the way the speech was edited did "give the impression of a direct call for violent action."
"The BBC would like to apologize for that error of judgment," he said in the letter.
The Panorama program, broadcast a week before the US presidential election, spliced together two separate excerpts from one of Trump's speeches, creating the impression that he was inciting the January 2021 Capitol Hill riot.
The error was included in an internal report by a former standards adviser, which also cited BBC failings in its coverage of the Israel-Hamas War, transgender issues, and other subjects.
Mounting criticism of bias at the broadcaster led to the resignation of its Director General, Tim Davie, and Chief Executive of News, Deborah Turness, on Sunday.
While Shah accepted the criticism of the Trump edit, he hit back at suggestions that the BBC had sought to "bury" any of the allegations or failed to tackle any problems.
It had published corrections when it got things wrong, changed editorial guidance, made leadership changes, and taken disciplinary action, he said.