Dundas & Wilson and London's Bircham Dyson Bell have confirmed that they have held discussions about a formal tie-up.

A statement from senior management at both firms confirms that the pair are considering whether to "combine forces more formally", given their "positive mutual experience of collaboration to date".

The proposed move would significantly bolster the London office of Scotland's Dundas, which has offices in Edinburgh and Glasgow. The firm has previously set out its intention to grow its City presence. Bircham is a single-office firm based in London's Westminster.

The joint statement, signed by Dundas managing partner Donald Shaw (pictured) and Bircham managing partner Guy Vincent, says: "As both firms have previously confirmed separately, we are committed to developing our businesses, and each party has been considering various options including combining forces with firms who could help us to achieve that aim.

"Given our positive mutual experience of collaboration to date, we can confirm that discussions between Dundas & Wilson and Bircham Dyson Bell have taken place as to whether we might combine forces more formally. At this stage we have reached no conclusions so it is very much business as usual for both firms.

Dundas is currently ranked 49th in the UK top 50, after turnover rise 1.6% during the 2010-11 financial year to £62m, alongside a 2.5% increase in profits per equity partner (PEP) to £325,000. The firm has around 280 lawyers and approximately 80 partners.

Bircham, which has around 170 lawyers including almost 50 partners, reported revenues of £31.9m for 2009-10, when PEP stood at £232,000.