In a statement this morning, Tilney, which has three offices in Scotland, confirmed that it is in “exclusive discussions with Smith & Williamson about a potential combination of our businesses”.

Tilney, which was acquired from Deutsche Bank by private equity firm Permira in 2014, previously expressed interest in taking over Smith & Williamson in 2017.

In its statement, the firm said: “A merger of Tilney and Smith & Williamson would create a market-leading, integrated UK wealth management and professional services group with over £45 billion of assets under management.

“These discussions are ongoing and there can be no certainty that a transaction will proceed. A further announcement will be made as and when appropriate.”

News of the negotiations was first broken in The Sunday Times yesterday, and City A.M. reports that talks have been taking place for a number of months.

With over £24 billion in assets, Tilney is one of the largest wealth managers in Scotland and one of only a handful of firms with an office presence in Edinburgh, Glasgow and Aberdeen.

The firm recently expanded its Scottish presence, moving to a new Edinburgh office and appointing Ronnie Binnie from Standard Life Aberdeen as managing partner for Edinburgh and Aberdeen.