The majority of the Harris Tweed industry could be under the control of a Yorkshire company within months, BBC Scotland has learned.
KM Group produces 95% of Harris Tweed
Clothing manufacturer Haggas is in talks with the KM Group and a smaller tweed firm in the Western Isles.
The KM Group produces 95% of Harris Tweed and has been on the market for four years.
It recently shut one of its two mills with all of the work being transferred to Stornoway on Lewis.
The move was seen by observers as one which would make the company more attractive to potential investors.
There has been interest in the KM Group since 2002, when owner Derek Murray said he was open to offers.
The three parties involved in negotiations have not been willing to comment.
However, it is understood that talks are at an advanced stage and a deal could be concluded by the end of year.