Vodafone Group is in talks to buy the Italian assets of Swedish operator Tele2.

According to a report in Reuters, sources familiar with the situation say that Vodafone is leading in talks to secure the assets, which offer fixed-line and Internet services to more than 2 million Italians. Italian telecoms Tiscali and Fastweb have both withdrawn from the acquisition talks. Sources also said the deal is set to close by mid October.

Vodafone last month said it was looking to supply fixed-line broadband Internet to its mobile customers, including those in Italy and Spain. If Vodafone closes the deal with Tele2, it would become a strong competitor for Telecom Italia. Tele2 also could be looking to unload its Spanish assets.