Ken Loach, the film director renowned for hard-hitting social realism films such as Riff Raff, Raining Stones and My Name is Joe, has signed a deal with Channel 4 to make his first TV work in years.

The film, which has the working title the Navigators and follows a group of Sheffield railway maintenance workers struggling to adapt to privatisation, is Channel 4's new head of drama Tessa Ross's first commission.

The broadcaster is stumping up 30% of the budget and will premiere the film in the UK on its terrestrial service. In the rest of the world, the Navigators is being lined up for a theatrical release.

The 100-minute movie, which has been scripted by Rob Dawber and is being made by Parallax Pictures, went into production earlier this week on location in Sheffield. It is expected to go out on Channel 4 next year.

Mr Loach started out working in British TV in the 1960s, collaborating with producer Tony Garnett on ground-breaking work such as Up the Junction and Cathy Come Home, before moving into feature films with Kes. His latest film, Bread and Roses, deals with a Los Angeles janitors' strike.