The companies both based in Sydney, each issued statements today.

Lend Lease said it 'constantly evaluates alternatives to maximise shareholder value', has considered proposals from third parties and had talks with Mirvac 'on a confidential basis'.

Both companies said there was 'no expectation or certainty that any transaction will result from these or any other discussions'.

If a merger went ahead it would create Australia's second-largest property group by market value behind Westfield.