Trinity, the regional newspaper group, is hoping to announce a merger with Mirror Group, the tabloid publisher, within days, if Trinity's board is satisfied it will be able to sell one of its flagship titles for a good price.

Trinity's board met yesterday to discuss plans for an auction of the Belfast Telegraph, following last week's British government announcement that the group could only merge with Mirror if the title was sold.

Mirror has agreed in principle the terms of a £1.3 billion sterling deal with Trinity. Mirror continues to see Trinity as its most desirable partner. Contrary to Trinity's original wishes, Mr Victor Blank, Mirror's chairman, would chair the enlarged group, with Mr Philip Graf, Trinity's chief executive, retaining that post after a merger.

The group wants to be sure it could conduct an orderly auction of the Belfast Telegraph, which has been described as one of the jewels in its crown. It and the three other titles represent about 20 per cent of group profits. Analysts believe that title and three others Trinity would be obliged to sell would be worth more than £200 million sterling.