KPMG UK had started talks with the Swiss unit to explore working together closely to benefit clients and partners, Jon Holt, CEO of KPMG UK, told Reuters in an emailed statement.
"Together, we would grow faster, be more profitable and do so in a sustainable way," Holt said.
The Financial Times first reported the possibility of a merger on Wednesday. It said KPMG Switzerland has 2,600 employees, while it employs about 17,000 people in the UK.
Reuters reported in October that KPMG was planning to cut about 100 jobs in its UK deal advisory business.
The others in the Big Four accounting firms are Deloitte, EY and PwC.
(Reporting by Akanksha Khushi, Utkarsh Shetti and Nilutpal Timsina in Bengaluru; Editing by Sherry Jacob-Phillips, Jamie Freed and Savio D'Souza)
