Norton Rose Fulbright has confirmed it is in late-stage merger talks with Australian firm Henry Davis York.

The firms were first rumoured to be holding discussions in November last year.

In a joint statement issued today, the firms said: "Global law firm Norton Rose Fulbright and leading Australian law firm Henry Davis York are exploring a potential combination to create one of the largest providers of legal services in the Australian market, with leading positions in key industry sectors and practices."

Partners at both firms will vote on the merger this summer.

Henry Davis York has offices in Canberra, Brisbane and Sydney. The firm consists of 45 partners, 71 special counsel or senior associates, and 63 lawyers.

It is a full-service firm with a focus on the financial services, government, infrastructure, healthcare and university sectors.

Norton Rose has more than 600 lawyers in Australia, based in Brisbane, Melbourne, Sydney and Perth – a legacy of its 2010 merger with Australian firm Deacons.

The Deacons merger was followed by a 2011 tie-up with Canadian firm Ogilvy Renault and leading South African firm Deneys Reitz. These were followed by two further Canadian mergers in 2012 and January this year.

Meanwhile, Norton Rose will merge with US firm Chadbourne & Parke later this year, its second US merger following its deal with Texas-headquartered Fulbright & Jaworski in 2013.

Sources close to Chadbourne say the firm had approached firms including Baker McKenzie, DLA Piper and Hogan Lovells to discuss merger options during the past year, before agreeing its deal with Norton Rose.

The firm has seen a stream of partner exits in recent months, including a team of energy partners who joined US rival Covington & Burling in April.