Edinburgh and Manhattan-based fantasy sports company FanDuel and its Boston-based rival DraftKings are “finalizing terms of a merger”, according to a report by ESPN.

The recent $6 million settlements between both firms and the New York attorney general were a key obstacle that needed to be cleared for a merger to take place, the report said.

“As we have stated previously, a potential combination would be interesting to consider,” a DraftKings spokesperson told ESPN.

“However, as a matter of policy, we don’t comment on rumors or speculation, and there can be no assurances at this time that any discussion about a combination would result in an agreement or merger.”

A FanDuel spokeswoman declined comment.