Anil Ambani-led Reliance Communication on Monday said it is in talks with AFK Sistema to merge the Russian conglomerate's Indian telecom operations through a cashless stock swap.

"Reliance Communications and AFK Sistema have entered into exclusive discussions on a potential merger between the Indian telecom business of Sistema Shyam TeleServices Ltd and RCOM through a stock swap," the company said in a statement.

The discussions, it said, are ‘indicative and non-binding in nature, and remain subject to due diligence, definitive documentation and approvals, as may be necessary.’

Also, there is no certainty that any transaction will result, the statement added.