The companies may announce a deal in a few weeks, the report said here, adding that no final decision has been made and talks could fall through.
ConocoPhillips declined to comment, while Concho did not immediately respond to Reuters request for comment.
As on Tuesday, the market capitalization of Concho was $8.68 billion.
The report comes amid a decline in demand for hydrocarbons due to the coronavirus-induced lockdowns, resulting in a historic fall in oil prices.
Reporting by Anirudh Saligrama in Bengaluru; Editing by Arun Koyyur
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