The move was revealed by NHS Confed chief executive Matthew Taylor at NHS ConfedExpo yesterday.

Chief executive of NHS Providers, Daniel Elkeles said: ‘NHS Providers and NHS Confederation have always worked collaboratively for the benefit of our members across the NHS. 

‘We will continue to work together with the confederation as effectively as possible and explore options for even closer working, focusing on minimising duplication in our work and delivering the best possible value for members during this financially challenging time. Decisions on collaborating more formally will be determined by the boards of trustees of both organisations.'

NHS Providers said talks would focus on collaboration adding a full merger could be an outcome at the end of the process.

An NHS Confederation spokesperson said: ‘NHS Confederation and NHS Providers have always worked collaboratively for the benefit of our members across the NHS. We will continue to work together with NHS Providers as effectively as possible and explore options for even closer working, focusing on minimising duplication in our work and delivering the best possible value for members during this financially challenging time. Whether we decide to collaborate more formally will be determined by the boards of trustees of both organisations.'

Responding to a question on a possible merger yesterday, Taylor said: ‘We don't want to announce something really big and then to work out how to do it. You'll have to be patient.'