Avon Fire and Rescue is looking at the possibility of working in partnership with a neighbouring brigade as a way to save money.
The service, which covers Bath and north east Somerset, has begun talks with Devon and Somerset Fire and Rescue to discuss all options, from sharing some equipment and jobs, right up to a full merger.
Councillor Terry Walker, chair of Avon Fire Authority, said that in tough economic times all public sector organisations needed to come up with ways of reducing spending.
Stressing that the talks were still at the very earliest stages, he said: "During these challenging times we cannot rule out new ways of working to help meet our reduced budgets, whilst aiming to maintain the much valued service we provide to the public.
"Our initial talks with Devon and Somerset will look into how we work together."
This was backed by Councillor Mark Healey, chair of Devon and Somerset Fire and Rescue Authority, who said any changes would need to have tangible benefits for local people.
He said: "Working with Avon Fire and Rescue Service could provide real opportunities for improving public safety.
"We recognise that the fire and rescue service has to change and, like others, face an uncertain financial future.
"The Government direction is clear and our times of austerity are not behind us. Working with another fire and rescue service may help reduce our costs, whilst continuing our aim to improve or maintain public safety."
Chief fire officer Lee Howell, from Devon and Somerset, and chief fire officer Kevin Pearson, from Avon, are personally leading discussions and have said they remain open minded about what might happen in the future.
No decisions have yet been made about the extent of how the two services could work together.
Avon Fire and Rescue serves the communities of B&NES, Bristol, North Somerset and South Gloucestershire.
It covers an area of 134,753 hectares with a population of more than one million and has 23 fire stations and more than 900 members of staff.
Devon and Somerset has headquarters in Exeter and employs 2,300 people.
