Based on the share prices of the two companies at close of business on 6 December, the possible offer values Ladbrokes Coral at 160.9p per share, plus a CVR of up to 42.8p per share.
GVC Chief Executive Kenneth Alexander is expected to head up the combined group, although this has yet to be finalised and may change over the coming weeks.
"The boards believe that a transaction has the potential to create material shareholder value and that there is a compelling strategic rationale for the possible offer", the firms said in the statement. Ladbrokes Coral, whose traditional betting shops in the U.K.'s town centers are fading, would get more exposure to the expanding digital gaming business, while GVC could reach more potential customers for its online platforms.
The last round of takeover talks broke down in August amid reported disputes about the respective value of the companies.
Ladbrokes has almost 3,700 bookies on the high street, while Isle of Man-based GVC has a raft of brands after a series of acquisitions, most recently snapping up bwin.party in February a year ago.
The final amount for the sale of Ladbrokes is dependent upon the review of fixed-odds betting terminals (FOBTs), which could result in the maximum stake falling to just £2 from £100.
For fast-growing GVC, which since making the jump from AIM to the full list last year has grown organically and through acquisitions such as Bwin.Party, this is its third attempt at a tie-up with Ladbrokes, following talks in August and a first tilt last year.
The review is part of a government crackdown on FOTBs after MPs raised concerns the machines were too addictive and fuelled problem gambling.
They added that the enlarged group would benefit from operating different brands across different markets including the UK, Italy and Australia.
The merger would follow previous combinations like that of Paddy Power and Betfair as well as Ladbrokes with Coral.
"GVC's recent move to exit Turkey cleared the last barrier and LCL shareholders should be pleased to see the firm is now better insulated against the vagaries of the United Kingdom market", said Neil Wilson, senior market analyst at ETX Capital.