Talks between the PGA Tour and Saudi Arabia’s public wealth fund are reportedly still alive despite a series of setbacks in negotiations over a merger. Nearly a year has passed since the PGA and LIV Golf agreed to join forces and Rory McIlroy felt compelled to say his confidence in an agreement was at an all-time low last week.

However, it has now been claimed that a blockbuster £1.2billion deal is very much on the cards. Reports in the USA claim that the term sheets were exchanged in the last few days.

According to the New York Times, the agreement would see the Saudi Public Investment Fund – which bankrolls LIV Golf – inject £1.2bn into the PGA’s for-profit arm.

The report adds that the Saudis would ultimately pay just over £2bn to PGA Tour Enterprises. If that were to be the case, the PGA Tour would retain majority control of PGA Tour Enterprises.

It comes a week after McIlroy revealed that his confidence in a deal was very low. He was reacting to news that Jimmy Dunne – reportedly a key figure in the policy board – had quit his role.

Dunne is an ally of McIlroy, who also quit the policy board earlier this year, and the Irish golfer believed his friend played an important role in discussions.

“Honestly, I think it’s a huge loss for the PGA Tour if they are trying to get the deal done with PIF and unify the game. Jimmy was basically the relationship – the sort of conduit between the PGA Tour and PIF,” McIlroy said.