Top-100 firms Penningtons and Manches are thought to be close to finalising a merger.
The pair have confirmed that their management teams are in talks about combining the two London-headquartered practices.
A statement from Penningtons said: ‘We can confirm that we are in discussions with the management team at Manches LLP concerning the possibility of a merger between our two practices. It has been agreed by both firms that these talks are being undertaken on a confidential basis. We are therefore not currently in a position to make any public comment on their likely outcome.’
The firms reported turnover of around £60m in total in 2013 and have around 250 lawyers between them.
Manches, with offices in London, Oxford and Reading, markets itself to high-net-worth clients and growing mid-market companies. Its main areas of expertise are corporate, dispute resolution, employment law, intellectual property, information technology, property, private client and family law.
Penningtons is based in the City of London, Cambridge, Hampshire and Surrey and has 67 partners and 360 staff in total. Its main areas of practice are dispute resolution, corporate and commercial, real estate and private client, provided through its business services, real estate and private individuals divisions.
It merged with Dawsons Solicitors and acquired City firm Wedlake Saint in 2011.