A recommendation to merge Peterborough City Hospital with Hinchingbrooke could be made at the end of April.
The trusts which run both hospitals have already signed a Memorandum of Understanding to work closer together.
The options being considered include sharing back office work, joining up clinical teams, or even a full merger.
Stephen Graves, Peterborough and Stamford Hospitals NHS Foundation Trust CEO, said regulators would decide whether to support or oppose any recommendation.
He added: “I’m conscious that if some of these options do not have a negative effect on services, or have a positive effect, and reduce back office costs, I can’t help but be attracted to them even though there might be fewer people like me.
“You could imagine a few quite small services coming together and being located in one or either place. But we would consult with the public about that.”
Huntingdon MP Jonathan Djanogly has already started a petition against any merger.
MP for Peterborough Stewart Jackson said: “Maybe some staff and functions will need to be shared with Hinchingbrooke and a new trust arrangement put in place. The status quo cannot endure without a potential reduction in patient services.”
North West Cambridgeshire MP Shailesh Vara said: “Where Peterborough City Hospital and Hinchingbrooke can work together to make savings, for example with management and IT, then clearly this should be looked at.”