A merger would represent a major consolidation in the world aero-engine industry, which currently includes three major players - Rolls Royce, United Technologies Corp's Pratt & Whitney and General Electric Co.'s aero-engines division. The British publication said it understood that Rolls Royce's adviser NM Rothschild and investment bank Goldman Sachs had put such merger proposals to Rolls Royce.

"If a deal of this sort is now feasible, Rolls will have to look at it carefully," an adviser was quoted as saying. "It would be the last piece of consolidation in the aerospace engine market and a similar opportunity may never recur," the adviser said. A spokesman for United Technologies was not available for comment. Rolls Royce spokesman Chris Springham the group never commented on such speculation.