SES, the satellite company, said that it was in discussion with the U.S rival Intelsat over a possible combination of their businesses that would create an industry giant.
SES announced after a media source said that the two companies were nearing a deal valued at more than $10 billion including debt.
"In response to rumours in the market, SES S.A. confirms that the company has engaged in discussions regarding a possible combination with Intelsat," SES said.
"At this stage, there can be no certainty that a transaction would materialise."
As per the report, in the next few weeks SES is trying to reach an agreement with Intelsat.
Merger talks between the two signal further consolidation in the rapidly changing satellite Internet industry to challenge the likes of Elon Musk-owned SpaceX's Starlink and Amazon.com's Project Kuiper.
Demand for satellite launches is expected to accelerate after recent sanctions sidelined the Russian space launch industry, and giant satellite constellations could offer a new channel to beam broadband Internet from space.
French satellite firm Eutelsat is in the process of buying Britain's OneWeb, with the deal expected to be finalised in the second or third quarter of this year and aiming to offer fast internet services by satellite.
