Addleshaw Goddard is understood to be in discussions over a tie-up with German law firm Luther, as protracted merger talks with US firm Hunton & Williams continue to rumble on.

Luther, which is headquartered in Cologne, has 10 offices across Germany and six international offices. In 2016, it posted revenues of €124m (£106m), of which €110.3m (£94m) was generated by its German offices.

Addleshaws' international network includes offices in Asia and the Middle East; however, the firm currently has no presence on the European continent. Alongside its sizeable domestic presence in Germany, Luther has European offices in London, Brussels and Luxembourg, and Asian offices in Shanghai, Singapore and Myanmar's former capital Yangon.

A spokesperson for Addleshaws said: "Germany is a market full of opportunity, but we don't comment on merger speculation and so have nothing to say."

Meanwhile, the firm is also making progress with its proposed merger with US firm Hunton & Williams, with one Addleshaws partner saying that the talks are "moving forward".

The talks stalled during the summer in the aftermath of the UK's Brexit vote as both sides took stock of the political fallout, but they are now understood to be at an advanced stage.

An Addleshaws partner said they anticipate a proposal being put to the partnership in the first half of this year.

The firm is currently in the process of electing its next managing partner, with a decision set to be made by the end of February. Current managing partner John Joyce is standing for re-election as his first three years at the helm of the firm draw to a close. No other candidate has yet come forward and a challenge is thought to be unlikely.

Joyce is understood to be leading the Hunton merger talks, with corporate head Yunus Seedat also playing a key role.

Hunton posted revenues of $528m (£362m) in 2015, making it the 62nd largest US firm by revenue, according to Legal Week sister publication The American Lawyer's annual Am Law 100 rankings.

The news comes as Addleshaws prepares to merge with Scottish firm HBJ Gateley later this year, a tie-up that is scheduled to go live on 1 June.

Addleshaws posted revenues of £201.8m in 2015-16. Once the merger with HBJ takes effect, the firm will have roughly 230 partners, more than 1,100 lawyers and combined fee income of about £224m.