A deal between MTN and RCom could be announced this weekend despite threats of legal action to block the deal, the Wall Street Journal said in a report in its online edition on Thursday, quoting two unnamed people familiar with the situation.

"The deal will be worded in such a way that it will likely avert a lawsuit from being filed. But, in any case, (RCom and MTN) are prepared to move forward and deal with the Mukesh Ambani challenge when and if it comes. Their lawyers are telling them it's an acceptable risk to take," the report quoted one of the people saying.

The report added that the two companies are "getting very close to announcing the deal. If there are no last-minute disagreements, the announcement may come as early as Sunday or sometime next week."

Separately, another report in the British daily Financial Times said RCom is tying up with some global private equity and Middle-East sovereign funds for acquiring a majority 51 per cent stake in South African telecom major MTN, with an aim to thwart off any possible legal challenge from elder brother Mukesh-led Reliance Industries.