Fairfax Media and John Singleton’s Macquarie Radio are very close to a $200 million merger, Fairfax Media is reporting.

The deal, which is expected to be signed before Christmas, would see Macquarie’s 2GB and Melbourne’s 3AW in the same camp along with Fairfax’s Sydney station 2UE and would see Sydney shock Jocks Alan Jones and Ray Hadley on the same team as veteran Melbourne broadcaster Neil Mitchell.

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The two groups tried to merge a year ago but the deal broke down amid acrimony in February.

The deal would see Macquarie selling its Sydney station 2CH.

Both Fairfax radio and Macquarie have performed disappointingly in recent times