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BEIJING, China - Editors of a Chinese newspaper known for bold reporting were meeting Tuesday with propaganda officials to find a way out of a censorship dispute that has triggered protests and evolved into a political challenge for China's new leadership.

What started out as a confrontation by Southern Weekly journalists with a top censor over a New Year's editorial has rapidly become a focal point driving public calls for the authoritarian Communist Party government to loosen its grip on information.

The dispute centres on how the editorial, originally calling for political reform, was transformed into a tribute praising the Communist Party. Scholars have signed open letters calling for the censor's dismissal, celebrities are speaking out for the paper on microblogs and hundreds of people gathered for a second day outside the publication's office bearing flowers and signs in support.

On Tuesday, the paper's editorial committee was to hold a fourth round of negotiations with its top management, which is part of the provincial propaganda office, according to a Southern Weekly editor. The editor spoke on condition of anonymity because of an internal directive not to talk to the foreign media.

Propaganda officials want the newspaper to publish as per normal on Thursday but editors are negotiating over whether to do so, and the terms under which they would be willing, for example, if they could include a letter to readers explaining the incident, the editor said.

The committee is also pushing a larger appeal to abolish censorship of the newspaper's content prior to publication, the editor said. The suggestion is that Communist Party leaders could provide direction but not interfere with reporting and editing, and should refrain from taking issue with content until after publication, the editor said.

Protesters again gathered Tuesday outside the offices of the newspaper in the southern city of Guangzhou bearing signs and shouting slogans, said two participants. A handful of party supporters had also showed up and they were engaged in heated debates with the crowd, they said.

"Southern Weekly is the only mainland newspaper that, relatively speaking, is more able to report the truth," said one of the protesters, Cheng Qiubo, a democracy activist. "We are very angry that it has been censored ... so we hope that this country can have media freedom, to abolish the news censorship system."

The issue also galvanized a wide variety of people on China's popular Twitter-like microblogs, with many journalists, scholars, entrepreneurs and celebrities posting messages of support for the newspaper's stance.

"One word of truth outweighs the whole world," celebrity Chinese actress Yao Chen quoted the Russian Nobel Prize Literature winner Alexander Solzhenitsyn in a post that was accompanied by the newspaper's logo.

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Chinese newspaper in censorship row holds talks with propaganda officials as protest continues