Orrick Herrington & Sutcliffe is in talks to enter the German market – with a merger the firm's preferred route into the country.

The US firm is already in talks in Germany, with Duesseldorf corporate firm Holters & Elsing touted as a potential target.

Orrick refused to comment on whether it was talking to Holters but did confirm its plans to open in the region. Other than a merger, other options under consideration include an alliance with a local firm or team hires.

Orrick's newly appointed senior partner and former managing partner for Europe, David Syed, told Legal Week: "Germany is an important market and the market we want to enter next. It is clearly a hole in our European network."

He added: "At the moment there are three different options. One is to go in with a team and open an office. Another – the preferred option – would be through a merger with a local firm. The third option would be to start off with a 'best friends' agreement."

Holters, which has 22 partners and offices in Berlin and Frankfurt, denied that it was engaged in any merger talks with Orrick.

The firm's managing partner, Arno Frings, told Legal Week:"There are no merger talks, full stop. I deny this."

In addition to looking at expansion elsewhere in Europe, Orrick is looking at opening in the Middle East. The US firm last week set up an official task force, including Syed, to research its options.