Accountancy firm BDO has confirmed that it is in advanced talks to merge with rival Moore Stephens.

The enlarged firm will overtake Grant Thornton to become Britain's fifth largest accountant, behind the so called big four of Deloitte, PWC, EY and KPMG.

The deal is expected to complete in spring 2019 and the new group will trade under the BDO brand.

It will boast gross annual revenue of £590m and employ 5,000 people across the UK, including at BDO's office in Norwich's Thorpe Road.

Partners of both firms have voted in favour of the merger, subject to final contracts.

Paul Eagland, managing partner at BDO, said: 'If ever there were a time for firms to turbo-charge their growth, it's now.

'As a combined firm, we offer greater choice, competition and scalability to the top end of the market, and are better placed to deal with any economic disturbance from Brexit.'