NEW YORK ( TheStreet) -- Vodafone ( VOD) and Verizon ( VZ) are reportedly it talks for a full merger as they discuss plans for their Verizon Wireless joint venture that is on the brink of generating cash.

If the companies proceed with a merger, it could be an all-stock combination worth more than 120 billion pounds ($179.8 billion), according to the U.K.'s Daily Telegraph. Verizon currently is loath to see Verizon Wireless pay dividends. Instead it prefers to see the cash used for paying down debt, according to the Telegraph.

Other options the companies are mulling for Verizon Wireless are that it begin paying a dividend to Vodafone or for both companies to put their stakes in Verizon Wireless up for sale to each other or a third party, the newspaper reports.

-- Reported by Andrea Tse in New York

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