Swisscom has reached a preliminary agreement with Vodafone to buy its Italian unit, Vodafone Italy, for eight billion euros, the two companies said on Wednesday, Azernews reports, citing ANSA.

Swisscom is already present on the Italian telecommunications market via its ownership of Fastweb.

"The parties have agreed that Swisscom will acquire Vodafone Italy for an enterprise value of 8 billion euros on a debt and cash free basis and subject to customary closing adjustments," Vodafone said in a statement.

"Vodafone has engaged extensively with several parties to explore market consolidation in Italy and believes this potential transaction delivers the best combination of value creation, upfront cash proceeds and transaction certainty for Vodafone shareholders.

"There can be no certainty that any transaction will ultimately be agreed," it added.

Swisscom said that it would merge Vodafone Italy with Fastweb if the deal goes through.

Last month Vodafone turned down a proposal from French group Iliad to merge the two companies' Italian subsidiaries.