The deal is expected to lead to about £1bn in cost savings and could lead to as many as 40,000 job losses as the two banks combined will employ 139,000 people and have 3,100 branches.
The advertising account alone is worth a combined £49m, a figure that would likely be slashed following a merger of the two banks.
The potential merger has already received government approval even if concerns are raised by competition authorities.
The takeover has been encouraged by both the Treasury and Financial Services Authority as a deal will ease concerns about the health of the UK banking sector.
A takeover would also end uncertainty about the strength of Halifax-Bank of Scotland after a run on its shares.
Details of the takeover are expected to be announced today, though it is not expected to conclude until the end of the year. The deal has been given the support of Prime Minister Gordon Brown who is understood to have encouraged Lloyds-TSB chairman Sir Victor Bank to buy his ailing rival.
At present, Lloyds TSB employs Rainey Kelly Campbell on its £31m ad account, while ZenithOptimedia handles media.
HBOS, which owns Halifax and Bank of Scotland, recently retained Delaney Lund Knox Warren on the £18m advertising account for both businesses, while Vizeum was unaffected as the media agency of record across the two brands.
DLKW was behind Halifax's long-running TV ads starring bespectacled Howard Brown, 42, the ex-cashier of Sheldon, near Birmingham.
Brown was one of many real staff Halifax turned into stars in their TV ads, but in April it was reported that he will be axed from the campaign. He has still been appearing on screen.
Lloyds TSB's entire £40m direct marketing account is handled by Rapier, which picked up the account last year, while Oglivy One handles Halifax's DM business.
The deal is not expected to affect Lloyds TSB's sponsorship of the London Olympics 2012, after it became the first Official Partner of the Games.
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