Tobacco advertising could be banned by the end of the year under plans published by the government on Thursday.

The Tobacco Advertising and Promotion Bill, originally introduced by Liberal Democrat peer Lord Clement-Jones, has previously been backed by the government and has passed through the Lords. Its expected to pass into law when MPs return in October.

Under the proposals, restrictions would be placed on tobacco product promotion in shops and in the media, and companies would be prevented from placing their logos on clothing or from giving away free samples.

Controversially, tobacco companies would also be banned from sponsoring sporting events.

This part of the legislation has embarrassed ministers since it emerged that Formula One chief Bernie Ecclestone had donated funds to the Labour Party before the sport was made exempt from the restriction.

The consultation paper proposes that world sports, including Formula One, would have until 2006 to find alternative sponsors.

"Tobacco advertising promotes a deadly habit," said public health minister Hazel Blears.

"The brands most heavily advertised are those most heavily smoked by children.

"A ban on tobacco advertising and promotion is an effective measure we can take to stop young people from starting to smoke and to reduce the numbers who will ultimately die each year from smoking related diseases such as cancer and coronary heart disease."

Liberal Democrat health spokesman Dr Evan Harris welcomed the announcement.

"This measure will save thousands of life each year and is long overdue. The fact it took a private members bill to spur the Government into action indicates the low priority Ministers give to basic public health measures," he said.

The government estimates that a ban could save 3000 lives each year.

The anti-smoking campaigners Ash welcomed the proposals, but warned of potential loopholes that could be exploited by tobacco companies.

They also called for companies to be given less time to comply.

"We've always taken the view that there is no real reason to give world sport special treatment on phasing out the sponsorship," said a spokeswoman.

"They've already had plenty of time to find alternatives. The time scale could be reduced."

Forest, an organisation representing smokers, argued that the ban could lead to a lack of choice for consumers.

"The only implication as far as smokers are concerned is that advertising encourages companies to develop new initiatives and new brands to promote. If that opportunity is taken away, the choice for the smoker is taken away as well," said a spokesman.

A spokesman for World Snooker, governing body of the sport which is heavily dependent on tobacco sponsorship, said there was an "ongoing" process to find alternative sponsors.

He said the issue was now "out of our hands".