GGK London is understood to be finalising merger talks with US agency Doner International, which wants to establish a broader base in the UK.
A deal would end months of speculation about the fate of GGK, a one-time rising star of the advertising world which has been hit by a string of high-profile account losses.
GGK managing director Andrew Hawkins has been seeking a buyer for the agency for over a year.
GGK London is 25 per cent owned by GGT, but sources close to GGT have ruled out a merger between the two, as GGK has lost a number of accounts over the past six months.
Hawkins denies that a deal has been signed, though sources claim the merger with Doner will be announced within weeks.
It is believed GGK plans to complete the merger before Christmas, and has been in talks with Doner along with two other agencies.
Doner already operates in the UK through a tie-up with Grey Advertising in a venture called
Donor Grey. It handles BP’s “On the move” account worth 1.6m (Register-MEAL). A spokesman for Doner Grey claims the BP account will not be affected by the merger.
Many GGK staff are expected to be given roles in the newly merged business.