The Renault board is running the rule over the merger proposal it received from Fiat Chrysler Automobiles (FCA) last week.
The deal proposed the new entity – which would have annual sales of £150bn – would be 50% owned by FCA shareholders and 50% by Groupe Renault shareholders.
FCA said the deal would create the third largest carmaker in the world with 8.7 million vehicle sales, operating in all market segments and put it in a strong position in developing new technology, including electrification and autonomous driving.
It said there would be no plant closures as a result of the merger, which it claimed would deliver €5bn of annual savings.
In a statement Renault said: “After careful review of the terms of FCA’s friendly proposal, the Board of Directors decided to study with interest the opportunity of such a business combination, comforting Groupe Renault’s manufacturing footprint and creating additional value for the Alliance.
“A further communication will be issued in due course to inform the market of the results of these discussions, in accordance with applicable laws and regulations.”