Deutsche Bank is set to transfer up to 800 staff and its hedge fund-servicing prime brokerage unit to BNP Paribas in a deal expected to be worth tens of billions of euros.
A formal agreement is expected to emerge in the coming weeks with Deutsche's clients set to receive letters outlining the practical implications of the transfer, according to the FT.
The deal, if advances, will see the transfer of "tens of billions of euros of assets" to the French firm, sources familiar with the matter told the publication.
The move follows a preliminary agreement signed by the two entities last month to ensure continuity of services to the Deutsche Bank's clients.
Most of the staff affected are based in London and New York. Some staff India-based employees are also expected to switch to BNP, as a part of the deal.
A successful deal with BNP will mean Deutsche will not have to pay redundancy for those individuals as it seeks to shed around 18,000 from its payroll globally.
The deal is yet to be confirmed by the two parties.