The Australian Competition and Consumer Commission (ACCC) is expected to make a final decision over a proposed alliance between Qantas Airways and the Dubai-based airline Emirates.
A deal which would see "a material, although not substantial" benefit to the financially ailing Qantas was already granted provisional approval by the regulatory body in December.
The planned alliance between the two companies was announced in September 2012. Neither company is investing in the other, opting instead to co-ordinate on ticket prices and schedules.
The ACCC said that the benefits of such a deal would outweigh the reduced competition that would result.
A tie-up between the two will bring an end to Qantas' current relationship with British Airways.