NEW YORK (CNN) - Bell Atlantic Corporation, the largest local phone service provider in the United States, is considering a $45 billion stock acquisition of AirTouch, the country's biggest wireless phone company, both companies confirmed Sunday night. An agreement could be announced as early as Tuesday.

If the two do merge, the new national company could rival wireless industry leader AT&T Corp. in size, analysts said.

A one-page statement issued by Bell Atlantic and AirTouch, however, said the discussions do not guarantee a merger will take place.

"No further comment will be made until both parties have reached a definitive agreement or until discussions have been terminated," the statement said.

Bell Atlantic and AirTouch are already partners in a wireless joint venture called PrimeCo Personal Communications L.P.

The acquisition would allow Bell Atlantic to combine its East Coast network with AirTouch's strong West Coast presence

GTE Corp. must first approve the deal before it can be announced. Bell Atlantic plans to buy the Irving, Texas-based GTE telecommunications company for $52.8 billion, sources said.

The boards of Bell Atlantic and AirTouch were expected to meet as the companies continued to examine each other's operations, sources said.

Meanwhile, GTE is actively involved in negotiations and conducting its own analysis of the proposed deal, sources said.

GTE's Chairman Charles Lee will be chairman of the combined GTE-Bell Atlantic and share the chief executive post with Bell Atlantic's Ivan Seidenberg, who will also be president. The GTE-Bell Atlantic deal remains subject to approval from the Justice Department and Federal Communications Commission.

No announcement on the AirTouch deal is expected Monday, but an agreement could be announced as early as Tuesday, sources said.

Bell Atlantic and GTE declined to comment. AirTouch could not be immediately reached for comment.

Bell Atlantic has been trying to expand beyond its local phone company roots by bolstering its wireless, data and Internet services. The company also aims to break into the long distance telephone market next year.

To be a strong rival in the fiercely competitive wireless market, Bell Atlantic needs its own national network, instead of merely a regional network in the Northeastern United States, analysts said.

A national network would allow Bell Atlantic to carry its customers' calls coast to coast, instead of paying fees to use rivals' networks. It would also allow it to reduce expenses and fees, while increase revenues and profits, analysts said.

AirTouch, spun off from local phone company Pacific Telesis in 1994, is the dominant cellular provider in California. AirTouch also acquired some western U.S. cellular licenses from cable television company MediaOne Group Inc. earlier this year.

AirTouch has about 16.1 million subscribers worldwide, while Bell Atlantic serves about 7.9 million wireless customers.

The potential acquisition of AirTouch and the planned purchase of GTE would follow Bell Atlantic's $25.6 billion purchase last year of Nynex, the New York-based Baby Bell.

As media reports of the AirTouch acquisition talks circulated on Thursday, shares of Bell Atlantic fell $4.50 to $53, while AirTouch gained $2.75 to $72.125. Both trade on the New York Stock Exchange.

Reuters contributed to this report.