Updated from 7:47 a.m. EDT

Federal regulators are set to give their blessing to the planned merger of Bell Atlantic ( BEL) and GTE ( GTE - Get Report), creating the largest local phone company in the country, the Washington Post reported Thursday.

According to the report, four of the five commissioners on the Federal Communications Commission indicated Wednesday that they would support the deal. The anticipated merger was announced two years ago. A decision will likely be announced either Thursday or Friday, according to a source close to the process.

The combined company, which will be called Verizon Communications, would control about 63 million telephone lines in 31 states, approximately one-third of the total lines in the U.S. The deal will add GTE's 4 million wireless customers to Verizon Wireless, the venture formed last year by New York-based Bell Atlantic and Britain's Vodafone AirTouch ( VOD), which is already the nation's largest wireless operator.

To satisfy regulators, Irving, Texas-based GTE agreed to spin off its Internet infrastructure company, Genuity, through a forthcoming initial public offering.

The combined company will have a market capitalization of close to $150 billion, with $60 billion in revenue while employing 260,000 people.

Dave Frail, a spokesman for Bell Atlantic, said, "We believe we have addressed all concerns raised by the FCC, and we are confident we can complete a deal by the end of the month."

Bell Atlantic shares were down 5/16, or 1%, at 57 1/16, while GTE shares were up 1/4 at 69 in midday trading. (Bell Atlantic closed down 13/16, or 1%, at 56 9/16 while GTE finished up 115/256, or 1%, at 69 51/256.)