Japan's two largest stock exchanges are expected to clinch a merger agreement as early as next Tuesday following months of drawn-out talks on how they can combine forces to survive a global wave of consolidation, a person familiar with the negotiations said Wednesday.

Under pressure from financial regulators frustrated with the pace of negotiations, the two exchanges may choose to reach a tentative deal before ironing out key differences as they aim for an integration in the fall of 2012, the person said.