In an agreement which will strengthen Deutsche Telekom's T-Mobile USA unit as the fourth-ranking US wireless carrier, the German company is reportedly close to finalizing a T-Mobile merger deal with smaller competitor MetroPCS.

Despite the fact that Deutsche Telekom has earlier too voiced the possibility of merging its struggling US brand with smaller rival MetroPCS, essentially to offer more substantial competition to dominant US carriers like AT&T and Verizon, several reports have now revealed that an agreement is now being actually worked out in that direction.

According to a Bloomberg report, it has been confirmed by Deutsche Telekom that talks are underway for a T-Mobile/MetroPCS merger; though some "significant issues" are still to be finalized.

Though Detusche Telekom has refrained from disclosing further details about the potential structure of the T-Mobile/MetroPCS merger deal, the company has nonetheless revealed that the ongoing talks largely pivot around Deutsche Telecom holding a majority share of a combined T-Mobile and MetroPCS.

As per the Bloomberg report, Deutsche Telekom has said in a statement about a T-Mobile/MetroPCS merger that "contracts have not yet been signed and the conclusion of the transaction is still not certain." In addition, the German company has also said: "The board of management and supervisory board of Deutsche Telekom have, therefore, not yet taken the resolutions necessary for such a transaction."