The jobs of staff members at local accounting firm Arthur Andersen look secure after management announced yesterday that an agreement had been reached with rival firm PriceWaterhouseCoopers (PWC).

Questions have hung over the local firm's future since legal charges were brought against Arthur Andersen, as a global accounting firm, for its role in the accounting problems experienced by bankrupt US energy giant Enron.

The fate of the global company remained unclear but Bermuda managing partner Scott Hunter and PWC joint managing partner Tom Conyers said yesterday that the local firms had reached an agreement in principle under which partners and staff from Andersen will join PwC.

The move is expected to become effective in early June and will see both partners and staff move to the PwC offices at Dorchester House.

Mr. Hunter said the decision is not "a merger in the true sense".

Mr. Conyers said:"This is a very exciting opportunity - both firms have exceptional teams of professionals and the agreement will, we are sure, enhance the quality and depth of service to clients and provide career development opportunities for all involved."

Mr. Hunter added: "Our clients have been very loyal to us in this challenging time. I am confident that as a result of this agreement they can continue to be served, in a seamless manner, by world-class professionals within an unsurpassed global network."

Both Mr. Hunter and Mr. Conyers declined to answer further questions at this time as the agreement is subject to due diligence review and individual firm approval.