Former Herbert Smith Germany ally Gleiss Lutz is in talks with Italy's Chiomenti, French firm Gide Loyrette Nouel and Iberian giant Cuatrecasas Goncalves Pereira over a new European alliance.

The four firms are discussing how to strengthen their ties, with sources close to the matter indicating that the potential alliance, which excludes any UK firm, would be an informal 'best friend' relationship.

Between them, the quartet took in turnover of more than €700m (£570m) for the 2011 calendar year, and have a combined total of almost 500 partners.

It is understood that Benelux firm Stibbe, which was formerly allied with Gleiss and Herbert Smith, is not involved in the new proposed alliance.

Gide declined to comment, while Chiomenti and Gleiss Lutz could not be reached for comment.

The news comes as Cuatrecasas denied reports that it is closing its London, New York and Shanghai offices.

The firm said: "Contrary to published reports, we confirm that our strategic plan is to maintain our current international presence, and, in particular (i) maintain our offices and address, in due time, a renewal of the partners responsible for the offices of NY and London as has been done regularly as normal since the establishment of our offices in those cities, and (ii) strengthen our operations in Shanghai, because we are experiencing a growth in the demand for services in this office."

Herbert Smith and former alliance partners Gleiss and Stibbe formally terminated their alliance at the close of 2011.

Herbert Smith first announced its withdrawal from the tie-up with its European partners last November in the wake of its failed merger bid with the two firms, less than a month after Gleiss and Stibbe partners voted against a deal.