According to Legal Week, it is believed that both firms will rebrand as King & Wood Mallesons early next year if the firms' partners approve the tie-up this week.

News of the global merger talks emerged earlier this year when both firms confirmed they were in discussions, bringing to an end Gilbert + Tobin's alliance with the Chinese firm, which was established back in 2007.

Mallesons said in a statement: "Mallesons confirms that it is in discussions with leading PRC law firm, King & Wood. Our discussions are ongoing and part of an ongoing process. Until that process concludes, we have nothing further to add."

If the merger goes ahead, King & Wood will become the seventh global law firm to establish a presence in Australia in recent years, following Norton Rose, Allen & Overy, DLA Piper, Clifford Chance, Squire Sanders and Ashurst. Baker & McKenzie has been in Australia since 1964.

Established in 1993, King & Wood is one of the largest law firms in China with over 990 lawyers and legal professionals. Headquartered in Beijing, the firm has offices throughout China as well as in Hong Kong, Tokyo, Silicon Valley and New York.

Mallesons currently has offices in Hong Kong, Shanghai and Beijing.