<PAGE>

                                                                    EXHIBIT 10.3


                        HEARST-ARGYLE TELEVISION, INC.

                  AMENDED AND RESTATED 1997 STOCK OPTION PLAN

  WHEREAS, on August 28, 1997 the stockholders of Hearst-Argyle Television,
Inc. adopted the Hearst-Argyle Television, Inc 1997 Stock Option Plan; and

  WHEREAS, Hearst-Argyle Television, Inc. desires to amend and restate the
Hearst-Argyle Television, Inc 1997 Stock Option Plan as set forth herein and
to adopt such amendment and restatement as the resulting "Amended and Restated
1997 Stock Option Plan", subject to approval by the stockholders of Hearst-
Argyle Television, Inc. (the "Approval").

  1. Plan Name and Purpose. Following the Approval, the 1997 Stock Option
Plan, as amended and restated herein, shall be known as the "Hearst-Argyle
Television, Inc. Amended and Restated 1997 Stock Option Plan", hereinafter
referred to as the "Plan." The purposes of the Plan are (i) to provide
incentives for key employees and Non-Employee Directors (as hereinafter
defined) of Hearst-Argyle Television, Inc. (the "Company"), and its subsidiary
corporations (within the meaning of Section 424(f) of the Internal Revenue
Code of 1986, as amended, (the "Code") and referred to herein as
"Subsidiaries") by encouraging their ownership of Series A common stock, $0.01
par value, of the Company (the "Stock") and (ii) to aid the Company in
retaining such key employees and Non-Employee Directors, upon whose efforts
the Company's success and future growth depends, and attracting other such
employees and Non-Employee Directors.

  2. Administration. This Plan shall be administered by the Company's Board of
Directors. Subject to the terms of this Plan, the Board shall have plenary
authority to determine the persons to whom options are to be granted, the
number of shares to be subject to each such option, to determine the terms and
provisions of any option agreements made pursuant to the Plan, to modify such
agreements, and to make all other determinations that may be necessary or
advisable for the administration of the Plan. For purposes of administration,
the Board, subject to the terms of this Plan, shall have plenary authority to
establish such rules and regulations, make such determinations and
interpretations, and take such other administrative actions as it deems
necessary or advisable. All determinations and interpretations made by the
Board shall be final, conclusive and binding on all persons, including the
holders of options granted under this Plan ("Optionees") and their legal
representatives and beneficiaries.

  The Board, in its discretion, may delegate any or all of its authority,
powers and discretion under this Plan to the Compensation Committee (the
"Committee"), and the Board in its discretion may revest any or all such
authority, powers and discretion in itself at any time. The Committee shall be
appointed from time to time by the Board of Directors. The Board of Directors
shall designate one of the members of the Committee as its Chairman. The
Committee shall hold its meetings at such times and places as it may
determine. A majority of its members shall constitute a quorum. All
determinations of the Committee shall be made by a majority of its members.
Any decision or determination reduced to writing and signed by all members of
the Committee shall be as effective as if it had been made by a majority vote
at a Committee meeting duly called and held. The Committee may appoint a
secretary (who need not be a member of the Committee). No member of the
Committee shall be liable for any act or omission with respect to his or her
service on the Committee, if he or she acts in good faith and in a manner he
or she reasonably believes to be in or not opposed to the best interests of
the Company.

  With respect to persons subject to Section 16 of the Securities Exchange Act
of 1934, as amended, or any successor statute (the "1934 Act"), transactions
under the Plan are intended to comply with all applicable conditions of Rule
16b-3 or its successors under the 1934 Act ("Rule 16b-3"). To the extent any
provision of the Plan or action by the Board of Directors of the Committee
fails to so comply, it shall be deemed null and void, to the extent permitted
by law.

                                      I-1
<PAGE>

  3. Shares of Stock Available for Options. The aggregate number of shares of
Stock that may be issued under this Plan shall equal 8,745,362, subject to any
adjustments that may be made pursuant to Section 5(g) hereof. Shares of Stock
used for purposes of this Plan may be either authorized or unissued shares, or
previously issued shares, held in the treasury of the Company, or both.
Immediately upon the termination or forfeiture of any option granted under
this Plan (other than by reason of exercise or other cancellation for
consideration), any shares of Stock covered by such option shall be available
for grant as further options hereunder.

  Unless specifically defined otherwise, "Fully Diluted Shares" means, as of
any date, the sum of (i) the number of shares of Stock then outstanding (not
including any shares held in treasury) and (ii) without duplication, the
number of shares of Stock issuable upon conversion, exchange or exercise of
all outstanding securities, other obligations, options or warrants,
convertible into, exchangeable for or otherwise providing the right to acquire
such shares.

  4. Eligibility. Options under this Plan may be granted to key employees and
Non-Employee Directors of the Company or any Subsidiary. In selecting persons
to be granted options, the Board may take into consideration any factors it
may deem relevant, including its estimate of the person's present and
potential contributions to the success of the Company and its Subsidiaries.
The maximum number of shares of Stock with respect to which stock options may
be granted in any one year to any employee shall not exceed 500,000.

  5. Terms and Conditions of Options. The Board shall, in its discretion,
prescribe the terms and conditions of the options to be granted hereunder,
which terms and conditions need not be the same in each case, subject to the
following:

    (a) Option Agreement. Each option granted under this Plan shall be
  evidenced by a written option agreement, which shall be executed by the
  Optionee and an authorized officer of the Company and which shall contain
  such terms and conditions as the Board shall deem appropriate, consistent
  with the terms of this Plan.

    (b) Option Price. The price at which each share of Stock covered by an
  option granted under this Plan may be purchased shall be determined by the
  Board and shall not be less than the fair market value per share of Stock
  at the time of grant, subject to the incentive stock option provisions set
  forth in Section 6. The date of the grant of an option shall be the date
  specified by the Board in its grant of the option.

    (c) Option Period. The period for exercise of an option shall not exceed
  ten (10) years plus one day from the date of grant, subject to the
  provisions of Sections 5(e), 5(h), 6, and the provisions of any option
  agreement.

    (d) Exercise of Options. In order to exercise all or any portion of an
  option granted under this Plan, the Optionee, or his or her representative,
  devisees or heirs, as applicable, shall deliver to the Company written
  notice specifying the number of shares of Stock to be purchased, together
  with cash or a certified or bank cashier's check payable to the order of
  the Company or shares of Company Stock having a fair market value equal to
  the purchase price therefor. An Optionee shall have none of the rights of a
  stockholder until the shares of Stock are issued to him or her. An option
  may not be exercised for less than one hundred (100) shares of Stock, or
  the number of shares of Stock remaining subject to such option, whichever
  is less.

    (e) Effect of Termination of Employment or Service as a Non-Employee
  Director. Except as may be set forth in any option agreement, the following
  provisions of this Section 5(e) shall govern the treatment of options upon
  the termination of an Optionee's employment or service as a non-employee
  director by the Company and each of the Subsidiaries (hereinafter, the
  "Optionee's Employment or Service"):

      (i) An option will automatically be forfeited and unexercisable upon
    the termination of an Optionee's Employment or Service if such
    termination was for Cause (as defined below) or was voluntary by the
    Optionee (other than voluntary termination in connection with the
    Optionee's retirement upon or after such Optionee reaches age 65
    ("Retirement Age"). Unless otherwise specifically defined in an Option
    Agreement, a termination shall be for "Cause" if the Company (or a

                                      I-2
<PAGE>

    Subsidiary) terminates the Optionee's Employment or Service because (A)
    the Optionee is convicted of a crime that is a felony (other than a
    traffic or moving violation); (B) the Optionee has willfully and
    materially breached, habitually neglected or failed to perform
    satisfactorily his or her duties as an employee, consultant or non-
    employee director; or, (C) the Optionee commits any material act or
    fraud or dishonesty during the course of the Optionee's Employment or
    Service.

      (ii) If an Optionee's Employment or Service is terminated because of
    (A) the death of the Optionee or (B) the Disability (as defined in
    subsection (v) below) of the Optionee, the Optionee, or his or her
    representative, devisees or heirs, as applicable, may exercise any
    options granted under this Plan that are exercisable on the date the
    Optionee's Employment or Service so terminates at any time prior to one
    year from the date of such termination.

      (iii) If an Optionee's Employment or Service is terminated because of
    the retirement of the Optionee at or after the Optionee reaches
    Retirement Age, then the Optionee may exercise any options granted
    under this Plan that are exercisable on the date the Optionee's
    Employment or Service so terminates at any time prior to one year from
    the date of such termination, subject to the incentive stock option
    provisions set forth in Section 6.

      (iv) If the Company terminates the Optionee's Employment or Service
    for any reason other than for Cause, then the Optionee, or his or her
    representative, devisees or heirs, as applicable, may exercise any
    options granted under this Plan that are exercisable on the date the
    Optionee's Employment or Service so terminates at any time prior to one
    year from the date of such termination, subject to the incentive stock
    option provisions set forth in Section 6. Notwithstanding the
    foregoing, if the Optionee's Employment or Service is terminated
    because the Optionee has become an employee of another company that is
    affiliated with the Company, through common ownership, common
    management or otherwise, then the options granted to such Optionee
    under this Plan shall not be deemed to be terminated, but rather shall
    continue in full force and effect as if the Optionee's Employment or
    Service had not been terminated.

      (v) Unless otherwise specifically defined in an Option Agreement,
    "Disability," as such term is used herein, shall refer to the Optionee
    becoming physically or mentally disabled (as determined in good faith
    by the Board) so that Optionee is unable to perform Optionee's duties
    which Optionee is required to perform for a period of more than one
    hundred twenty (120) consecutive days or more than one hundred eighty
    (180) days in the aggregate during any calendar year.

      (vi) If an Optionee's Employment or Service is terminated with the
    approval of the Board, the Board may, at its discretion, accelerate or
    otherwise modify the vesting conditions applicable to any options which
    are not exercisable on the date the Optionee's Employment or Service
    terminates, extend the period following termination of employment
    during which any outstanding options may be exercised (but in no event
    beyond the original exercise term of the grant), or modify the vesting
    terms and extend the exercise term of the grant.

      (vii) Nothing in this Plan or in any option granted pursuant to this
    Plan (in the absence of an express provision to the contrary) shall
    confer on any individual any right to continue in the employ of the
    Company or any Subsidiary, to continue to serve as a member of the
    Board, or to interfere in any way with the right of the Company to
    terminate his or her Employment or Service at any time.

    (f) Transferability of Options. During the lifetime of an Optionee,
  options held by such Optionee shall be exercisable only by the Optionee or
  his or her personal representative in the event of the Optionee's
  Disability. In the event of Optionee's death, options that remain
  exercisable under the terms of this Plan and the applicable Option
  Agreements may be exercised by the Optionee's representative, devisees or
  heirs, as applicable. Options shall be transferable by will or the laws of
  descent and distribution. Notwithstanding the foregoing, the Board may
  permit an Optionee to transfer exercise rights to any outstanding non-
  qualified stock options, provided such transfers are made to Permitted
  Transferees, as defined herein, and are made without consideration, for
  bona fide estate planning purposes. The Board shall establish whatever

                                      I-3
<PAGE>

  administrative criteria it deems appropriate in reviewing and approving
  such transfer requests. For purposes of this Section 5(f), "Permitted
  Transferees" shall mean a member of an Optionee's immediate family, trusts
  for the benefit of such immediate family members, and partnerships in which
  the Optionee and/or such immediate family members are the only partners.
  Immediate family members shall include an Optionee's spouse, descendants
  (children, grandchildren and more remote descendants), and shall include
  step-children and relationships arising from legal adoption.

    (g) Adjustments for Change in Stock Subject to Plan and Other
  Events. Subject to any more particular rights that the Board may grant to
  an Optionee under an Option Agreement, in the event of a reorganization,
  recapitalization, reclassification, stock split, stock dividend,
  combination of shares, merger, consolidation, rights offering, or any other
  change in or event affecting the corporate structure or Stock of the
  Company, the Board may make such adjustments, if any, in the number of
  shares subject to this Plan and in the number of shares covered by
  outstanding options and/or in the option price per share as it deems
  appropriate and necessary to preserve the value of the benefits provided
  hereunder.

    (h) Acceleration of Exercisability of Options Upon Occurrence of Certain
  Events. The Board may provide, in an Option Agreement relating to any
  option granted hereunder, that in connection with any Change of Control (as
  hereinafter defined) of the Company, effective as of such date as the Board
  shall determine, the exercisability of such option shall be accelerated and
  the option may be immediately exercised to purchase all or any portion of
  the shares of Stock subject to such option, or all or a portion of such
  option may be terminated, as determined by the Board.

    "Change of Control" shall mean (i) a merger or consolidation in which the
  Company is a constituent corporation following which securities of the
  surviving or resulting corporation possessing less than 50% of the combined
  voting power of such corporation's outstanding voting securities (computed
  on either an actual or fully diluted basis) with respect to matters
  submitted to a vote of the stockholders generally shall then be owned in
  the aggregate by persons who prior thereto were stockholders of the
  Company; (ii) a sale or transfer by the Company or any of its Subsidiaries
  of all or substantially all of the consolidated assets of the Company and
  its Subsidiaries to an entity that is not a Subsidiary of the Company;
  (iii) any "person" (as such term is used in Sections 3(a)(9) or 13(d)(3) of
  the 1934 Act), other than Excluded Persons, is or becomes the beneficial
  owner, directly or indirectly, of securities of the Company representing
  more than 50% of the combined voting power of the Company's then
  outstanding voting securities with respect to matters submitted to a vote
  of the stockholders generally; (iv) any "person" other than Excluded
  Persons is or becomes the beneficial owner, directly or indirectly, of
  securities of the Company representing more than 50% of the then
  outstanding Stock; (v) at such time as any shares of Series B common stock,
  $0.01 par value, of the Company are no longer outstanding, within any two-
  year period, a majority of the Company's Board of Directors is no longer
  composed of persons who were directors at the beginning of such two-year
  period, unless the continuing directors, together with the new directors
  who were approved by a majority of the prior directors, constitute a
  majority of the Board; (vi) the Company adopts a plan of dissolution or
  liquidation or liquidates or dissolves; or (vii) any transaction or series
  of transactions which has a reasonable likelihood or a purpose of
  producing, directly or indirectly, any of the effects described in
  paragraph (a)(3)(ii) of Rule 13e-3 of the 1934 Act. The term "Excluded
  Persons" means each of (i) The Hearst Corporation or any other "Permitted
  Transferee" (as defined in Article Four of the Company's Amended and
  Restated Certificate of Incorporation) and (ii) a trustee or other
  fiduciary holding securities under any employee benefit plan of the
  Company.

    Notwithstanding the foregoing, in no event shall any option be
  exercisable after the date of termination of the exercise period of such
  option specified in Section 5(c).

    (i) Stock Legends. Certificates evidencing shares of Stock issued under
  the Plan shall have conspicuously noted thereon such restrictions on
  transferability as the Company may require in order to ensure compliance
  with applicable federal and state securities laws and regulations.

    (j) Options for Non-Employee Directors. Notwithstanding any provision
  herein to the contrary, each Non-Employee Director of the Company shall be
  awarded options to purchase 4,000 shares of Stock each

                                      I-4
<PAGE>

  year that such person continues to serve as a director of the Company, and
  an additional 1,000 shares of Stock each year that such person serves as a
  chairperson of a committee of the Board. The initial grant to each Non-
  Employee Director shall have been made as of the adoption of the 1997 Stock
  Option Plan (or as soon thereafter as is reasonably practicable) and each
  subsequent annual grant shall be made on each anniversary of the date of
  the initial grant for as long as such Non-Employee Director continues to
  serve as a director of the Company or any of its Subsidiaries. All such
  options granted to the Non-Employee Directors shall have an exercise price
  equal to the fair market value of the Stock as of the date of grant (as
  determined by the Board of Directors), shall become fully exercisable two
  (2) years from the date of grant and shall expire ten (10) years from the
  date of grant.

    "Non-Employee Director", as defined by Rule 16b-3 shall mean a director
  of the Company who (i) is not currently an officer of the Company or a
  parent or subsidiary of the Company, or otherwise currently employed by the
  Company or a parent or subsidiary of the Company; (ii) does not receive
  compensation, either directly or indirectly, from the Company or a parent
  or subsidiary of the Company, for services rendered as a consultant or in
  any capacity other than as a director, except for an amount that does not
  exceed the dollar amount for which disclosure would be required pursuant to
  Item 404(a) of Regulation S-K; (iii) does not possess an interest in any
  other transaction for which disclosure would be required pursuant to Item
  404(a) of Regulation S-K; and (iv) is not engaged in a business
  relationship for which disclosure would be required pursuant to Item 404(b)
  of Regulation S-K.

    (k) Other Terms and Conditions. The Board may impose such other terms and
  conditions, not inconsistent with the terms hereof, on the grant or
  exercise of options, as it deems advisable.

  6. Provisions Applicable to Incentive Stock Options. The Committee may, in
its discretion, grant options under this Plan to eligible employees which
constitute "incentive stock options" (within the meaning of Section 422(b) of
the Code), provided, however, that the following provisions shall be
applicable to such options ("Incentive Stock Options"):

    (a) No Incentive Stock Option shall be exercisable more than ten (10)
  years from the date of grant thereof.

    (b) To the extent that the aggregate fair market value (determined at the
  time the respective Incentive Stock Option is granted) of Stock with
  respect to which Incentive Stock Options are exercisable for the first time
  by an individual during any calendar year under all incentive stock option
  plans for the Company and its Subsidiaries exceeds $100,000, such excess
  Incentive Stock Options shall be treated as options which do not constitute
  Incentive Stock Options.

    (c) No Incentive Stock Option shall be granted to an individual if, at
  the time the option is granted, such individual owns stock possessing more
  than 10% of the total combined voting power of all classes of stock of the
  Company or of its Subsidiaries, unless (i) at the time such option is
  granted the option price is at least 110% of the fair market value of the
  Stock subject to the option, and (ii) such option by its terms is not
  exercisable after the expiration of five (5) years from the date of grant.

    (d) The purchase price of a share of Stock under an Incentive Stock
  Option shall be no less than 100% of the fair market value of a share of
  Stock as of the date such option is granted.

    (e) An Incentive Stock Option shall be exercisable only while the
  Optionee is an employee of the Company or a Subsidiary, or within three (3)
  months after the date that the Optionee's employment with the Company is
  terminated for reasons other than death or Disability, for Cause, or
  voluntary termination by the Optionee.

  7. Amendment and Termination. Unless this Plan previously shall have been
terminated as hereinafter provided, this Plan shall terminate on, and no
option shall be granted hereunder, ten (10) years from (i) the date the 1997
Stock Option Plan was adopted by the Board or (ii) the date the 1997 Stock
Option Plan was approved by the Company's stockholders, whichever is earlier;
provided, however, that the Board may at any time prior to that date terminate
this Plan. The Board may at any time amend this Plan; provided, however, that
an amendment

                                      I-5
<PAGE>

shall be subject to stockholder approval if such approval is required for
favorable treatment under Rule 16b-3 or the Code or is required by the rules
of any securities exchange or market system on which securities of the Company
are listed, reported or admitted to trading at the time such amendment is
adopted. No termination or amendment of this Plan may, without the consent of
an Optionee, adversely affect the rights of such Optionee under any option
held by such Optionee. Notwithstanding anything in this Section 7 to the
contrary, this Plan may from time to time be amended to satisfy or otherwise
conform to the conditions and requirements and provisions set forth in Rule
16b-3 or in any successor role.

  8. Withholding. It shall be a condition to the obligation of the Company to
issue shares of Stock upon exercise of an option, that the Optionee (or any
beneficiary or other person entitled to act under the terms hereof) pay to the
Company, upon its demand, such amount as may be requested by the Company for
the purpose of satisfying any liability to withhold federal, state or local
income or other taxes. Without limiting the generality of the foregoing,
Optionees may be given the opportunity to elect to have shares of Stock
acquired through exercise of the option withheld to satisfy withholding tax
obligations.

                                      I-6