South Staffordshire College and Walsall College in merger talks

The move has come as a result of an 'area review' commissioned by former education minister Nick Boles.

The review aims to create fewer colleges and ensure they are more resilient and financially sustainable.

Walsall College, which is rated outstanding by Ofsted and is financially sound, was deemed to be in a good enough position to stay on its own after post-16 institutions were reviewed in the Black Country.

But when those in Staffordshire were looked at, it was recommended South Staffordshire College seek to explore the idea of joining up with Walsall.

The provider, which has campuses in Cannock, Penkridge, Lichfield and Tamworth, is rated good by Ofsted, although chiefs have faced a tough financial year having had to manage a £2 million reduction in funding from the Government.

Documents from the Black Country Local Enterprise Partnership describe the move as 'merger opportunities'.

However, Walsall College bosses said it would be too early to class it as a full merger.

They were also unable to provide any further details about what the implications would be for staff or students.

Principal and chief executive of Walsall College, Jatinder Sharma, said: "I am delighted with the news that Walsall College has received no recommendations as a result of the Black Country area review.

"Following this, Walsall College has been invited by the area review team to support the Stoke-on-Trent and Staffordshire area review.

"In response to this invitation, we can confirm that South Staffordshire College and Walsall College are exploring the possibility of forming a closer relationship between the two colleges.

"The two organisations border each other and there is much alignment between our mission, purpose and values that means closer collaboration is a sensible and natural direction for both institutions to explore at this stage.

"Whilst no decisions have been made, both colleges are currently working together to conduct a comprehensive assessment of the all possible options that, following a public consultation, could lead to partnership work that is in the best interests of students and stakeholders."

Bosses at South Staffordshire College were unavailable for comment.

It comes as bosses at Stafford College are in talks about merging with Newcastle-under-Lyme College in a move which is set to result in at least 18 redundancies.