US Airways Group Inc. and AMR Corp. are nearing an $11 billion merger that would create the world's largest airline, and the companies could announce a deal within a week, Reuters reported.

Under terms of a deal that are still being finalized, US Airways CEO Doug Parker would become CEO, while AMR's Tom Horton would serve as non-executive chairman of the board until the spring of 2014, when the combined company holds its first annual meeting, people familiar with the deal told Reuters.

The deal would come more than 14 months after the parent of American Airlines filed for bankruptcy in November 2011, and would mark the last combination of legacy U.S. carriers, following the Delta-Northwest and United-Continental mergers. Read more