International law firm Allen & Overy is in preliminary talks with Singapore's Allen & Gledhill for a potential tie-up, both firms told Reuters on Friday.

The talks are aimed at establishing whether an alliance or combination is possible, which would improve the positions of both firms in the Asia Pacific region, Allen & Overy said in a statement.

Allen & Overy has entered into preliminary talks with Allen & Gledhill which may, or may not, lead to proposals for a combination of the two firms subject to any necessary regulatory approvals in Singapore.

Allen & Overy is one of the so-called magic circle law firms in the United Kingdom, while Allen & Gledhill is the second largest law firm in Singapore according to Thomson Reuters publication Asian Legal Business.

Yes, it is confirmed, said Lucien Wong, managing partner at Allen & Gledhill, when asked if his firm had entered preliminary tie-up talks with Allen & Overy.

(Reporting by Rachel Armstrong and Eveline Danubrata)