The board of MetroPCS  (NYSE: PCS) has approved merger with Deutsche Telekom's (Pink: DTEGY) T-Mobile USA unit, German newspaper Financial Times Deutschland reported Wednesday, citing sources familiar with the deal.

The new entity is likely to be listed in which Deutsche Telekom is expected to hold a majority stake of 74 percent and MetroPCS 26 percent.

Deutsche Telekom, T-Mobile USA and MetroPCS could not be reached for comment, Reuters  reported.

Deutsche Telekom announced Oct.2 that it is holding talks to merge T-Mobile USA with MetroPCS in a move where German company aimed at exiting the U.S. wireless market.

Alexandre Iatrides, an analyst with Oddo & Cie in Paris, who has a neutral recommendation on Deutsche Telekom stock, told Bloomberg that T-Mobile USA and MetroPCS could generate cost savings worth $1.2 billion to $1.7 billion a year.

Earlier, in 2011 AT&T (T) failed to take over T-Mobile USA for $39 billion amid opposition from regulators. Recently, Deutsche Telekom named John Legere, the former chief executive officer of Global Crossing Ltd., to head the U.S. division.

The deal with MetroPCS is viewed as an attempt by Deutsche Telekom chief executive officer Rene Obermann to revive fortunes of T-Mobile, after the German company entered the U.S., Bloomberg has added.