A merger between T-Mobile and Orange appears to be the likely outcome of discussions between parent companies Deutsche Telekom and France Telecom.
Both companies declined to comment, with a T-Mobile spokesman saying: “All will unfold in due course.”
An announcement is rumoured to be made as early as tomorrow.
The latest development follows news reports that both Vodafone and O2 parent Telefonica had made offers to purchase T-Mobile.
Any form of deal would still be subject to regulatory approval.