City firm Lovells and US firm Hogan & Hartson are discussing a merger to create a firm with combined revenues of more than £1bn, according to reports.

The firm would comprise 2,500 lawyers and would be among the 10 largest in the world if the tie-up goes ahead.

A Lovells spokesperson said: ‘In the US, we have to date been focused on providing a clearly defined range of services that reflect our international strengths, and it is no secret that any significant expansion beyond that would require a major strategic move.

‘We review our US strategy on a regular basis and we have recently been taking a closer look at market developments and the opportunities that we believe are available to us. Beyond that, we are not in a position to comment further.’