Deutsche Bank and Zurich Financial Services are to agree the main terms to Deutsche's takeover of Zurich's non-UK fund management operations over the weekend, according to sources close to the firms.

Although the companies are refusing to comment officially on the state of the negotiations, privately they are confident of thrashing out terms ready for announcement next week. This will include naming the chief executive and chief investment officer of the combined entity, said the source. But crucial details of senior investment figures beneath this level are expected to take much longer to be decided.