"It's still something that is being considered," a source said. "Negotiations are on-going."
Other sources, however, insisted that the merger was in "suspended animation".
Jaques declined to comment on the issue, only saying that his mission would be to rebuild DY&R into a major creative and strategic force in the region. He described DY&R as having "lost its way dramatically over the past few years", but stressed that "WPP is now cranking it up for the agency".
Jaques' appointment effectively fills a position that was left vacant for about a year following the departure of Peter Steigrad.
After leaving the region in the late '90s when BBDO shuttered its creative shop The Hub during the financial crisis, Jaques was hired as European president of Ammirati Puris Lintas. The stint was cut short when Linttas merged with the Lowe group.
He then went on to run his own management and creative consultancy BigThinkingGroup, which he will now close.