The two Greek carriers suggested some remedies to the European Commission after it opened an in-depth investigation into the merger last July, concerned that it could lead to a monopoly on many domestic routes and create an unfair advantage.
But the concessions offered have been insufficient to ease regulatory worries, the sources said.
"The Commission will take a decision next week," said one of the sources, who had direct knowledge of the issue.
EU Competition Commissioner Joaquin Almunia, who has set a February 2 deadline for a decision, is expected to announce on January 26 that he will prohibit the deal.
However, the same source said that if the companies came up with further last-minute remedies, there was still the possibility of the merger receiving EU approval.
source: Reuters