Oil services company Schlumberger Ltd. is in advanced talks to acquire another major industry player, Smith International Inc., The Wall Street Journal reported.

The newspaper, citing people familiar with the negotiations, said the deal could be announced in the coming days. It said it was unable to determine the price of the potential deal by late Thursday.

In response to the article, Shawn Housley, director of investor relations at Smith International, said the company "does not respond to rumors of this variety." A message was left with Schlumberger seeking comment.

Schlumberger struggled last year as the global recession weakened energy demand and discouraged drilling operations around the world. But prices have since rebounded, and the company said in its most recent earnings report in January that its business will benefit as countries burn more fuel.