A deal could be announced within next week, accelerating the breakup of Andersen following its involvement in the accounting scandal of energy trading giant Enron, sources familiar with the negotiations told the daily.

The talks, however, may not result in agreement and Andersen's pending legal problems could prevent or delay any deal, the daily said.

Andersen is selling off most of its consulting and ancillary operations after the US Justice Department accused it of obstructing its investigation of the Enron debacle. The firm admitted it shredded documents on Enron after the probe began.

Several of Andersen's foreign consulting and auditing businesses have split from the firm and joined rivals like Ernst and Young, Deloitte and Touche and PricewaterhouseCoopers.

The US consulting operation is the last big chunk of Andersen that has not signed a deal with a rival.

Under terms being discussed, KPMG Consulting could pay more than 150 million dollars in cash to Andersen, more than 50 million in compensation to partners and at least 50 million for the firm's receivables.

Some 3,000 people are employed in Andersen's consulting business in the United States, which last year reported global revenue of 1.43 billion dollars, The Wall Street Journal said.

Barring an out-of-court settlement with the US government, Arthur Andersen should stand trial next week.