Although neither firm would confirm the merger, Lawyers Weekly’s source said a new firm, Dibbs Abbott Stillman, would emerge with the new financial year.

Both Dibbs’ managing partner Scott Sloan and Abbott Stillman & Wilson chief executive officer Chris Arnold said the firms had entered into discussions about formalising their relationship, but nothing had been signed at this stage.

Arnold said the discussions were a natural progression of the firms’ informal long-time working relationship. If the merger goes ahead, the group will have 165 people in Melbourne and over 500 nationally. It will be run as a federation with each state operating its own practice, but under the banner of a national firm.