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In a move that will also encompass the Institution of Incorporated Engineers, the newly created organisation will be around 250,000 members strong.

Julian Amey, chief executive of CIBSE says: "We are looking at the proposed merger with interest. The engineering and construction sectors are in a period of great change, and all representative bodies must be ready to adapt to remain relevant to their members. CIBSE is therefore keen to play a role in the shaping of the new Institution."

He adds that it is important for CIBSE to remain focused on achieving the key objectives of its five year plan: to grow membership, provide an extensive knowledge network for members and to develop its international role.

"We will be setting up a working group which I will chair," says Amey. "We will review developments from any merger, but our prime concern now is to provide the best possible level of services to our members."

Government believes that a combined institution will better serve the profession, and also be more cost-effective.

Professor Mike Sterling, President of the IEE agrees: "By merging, we will be able to meet the needs of our combined membership in the most cost-effective manner.

"A merged body would be far more effective in promoting engineering and the contribution it makes to society and the economy."

Falling numbers of entrants to the engineering professions and the subsequent skills shortages will be two key issues that the proposed merger would be expected to improve.

Lord Sainsbury, DTI Science and Innovation Minister comments. "This is a very positive move. The creation of a large organisation that represents a broad spectrum within engineering has many advantages, particularly in terms of providing a stronger voice for the profession and for tackling crucial educational and skills issues."

It is expected that, provided the members of each institution are in favour of the move, a firm proposal for the merger will be in place by the end of this year.