Sullivan & Cromwell is understood to be considering breaking into local law advice in Germany -only three weeks after it launched its English law project practice.

Sources in New York revealed that leading German firm Bruckhaus Westrick Heller Lober was told during a visit to Sullivans' New York office that the Wall Street firm was not interested in doing a deal because it wanted to break into German law advice by itself.

A spokesman for Sullivan & Cromwell in New York said "no such decision has been made", but added: "We are committed to Frankfurt and we are committed to studying how best to serve clients in Germany."