The two companies are working toward a deal announcement as soon as within the next two weeks and hammering out final terms such as whether to have a break-up fee in place, the person said, asking not to be named because the matter is not public.
The deal price has yet to be finalized and terms could still change, the person added.
AT&T and DirecTV declined to comment. Bloomberg News earlier reported that AT&T was offering to pay around $100 per share for DirecTV, whose management team will continue to run the company as a unit of AT&T. (link.reuters.com/xyf39v). The Wall Street Journal said a deal could happen in two weeks.
DirecTV shares rose 6 percent to $92.50 in extended trading on Monday.
DirecTV is working with advisers including Goldman Sachs Group to evaluate a possible combination following a recent takeover approach, Reuters reported last week.