Philippe Burtin, Chairman and Chief Executive Officer of Nexter Systems, attends a news conference to present the company's 2011 annual results in Paris February 29, 2012. REUTERS/Philippe Wojazer

PARIS (Reuters) - French and German military tank makers Nexter and KMW are due to sign their merger deal on Wednesday, Le Figaro newspaper reported citing sources close to the situation.

State-controlled Nexter and privately-held KMW have been in exclusive merger talks for more than a year, but reports have said that automotive and defense group Rheinmetall (RHMG.DE) was also interested in making an offer for KMW, which belongs to the Bode-Wegman family.

Le Figaro said Nexter, which builds the Leclerc tank, and KMW, maker of the Leopard, each employs about 2,700 people and had sales of 1.05 billion euros ($1.17 billion) and 795 million euros respectively in 2013.