The arch town and EVO-STIK League North rivals released a joint statement on Thursday predicting "exciting times" ahead if the move is approved by both the Football Association and the Northern Premier League after submitting a formal application.
The Unicorns and Ingfielders have promised to release more details for fans in the coming days and have already confirmed that it will not affect the next generation of players coming through their respective youth programmes.
The statement read: "We can confirm that both Ossett Town AFC and Ossett Albion FC have agreed outline terms on a merger of the two clubs subject to FA and league approval. Discussions are at an advanced stage.
Derby day: Albion and Town shake hands before kicking off in August 2017
"This course of action does not affect either clubs junior programmes which will remain the same. We have had great support from the town as a whole so far and we will update everyone as soon as there are any further developments."
The statement added: "At this time we would like to thank everyone behind the scenes at both clubs for their cooperation and input at this exciting time."
Founded in the West Yorkshire town of Ossett in 1944, Albion play at Queen's Terrace and are currently second from bottom. Town in 13th spot were founded eight years earlier in 1936 and play at Ingfield. Both clubs graduated to the NPL from the Northern Counties East League, Albion in 2004 after finishing as champions and Town in 1999 as runners-up.
Images courtesy of John Hirst/Ossett Albion
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