(Adds government comment)

TORONTO, April 7 (Reuters) - Canada's federal cabinet is considering a C$150 million ($121 million) fund to help private television broadcasters, the Canadian Press new agency reported on Tuesday.

Citing "sources close to the cabinet discussions," CP reported that the fund would be specifically geared toward local programming.

Government officials would not confirm the report.

"We've acknowledged that the industry is facing some tough challenges, but there's no announcement to speak of," said Deirdra McCracken, spokeswoman for Heritage Minister James Moore.

Finance Minister Jim Flaherty declined to comment on the report when asked by BNN Television.

The fund would benefit big private broadcasters like CTV and Canwest Global CGS.TO, though it is unclear whether the publicly funded Canadian Broadcasting Corp would be eligible for money, CP reported.

($1=$1.24 Canadian) (Reporting by Wojtek Dabrowski; editing by Jeffrey Hodgson)