The D2N2 devolution deal would see Nottinghamshire and Derbyshire take control of economic levers like jobs, housing, transport and other powers previously held by Whitehall.
Councillor Alan Rhodes, leader of Nottinghamshire County Council, said one of the conditions from Government for significant devolved powers is that areas agree to a directly elected mayor over a single combined authority. The deal would include all 19 local authorities in Derbyshire and Nottinghamshire.
He added: “Our current position is that there are two bids for combined authorities in progress - one for Derby and Derbyshire and one for Nottingham and Nottinghamshire.
“We will continue to negotiate to ensure that we get the best deal for the residents of both Nottinghamshire and Derbyshire but any agreement would be subject to approval by elected members and subject to public consultation.” Chancellor George Osbourne is expected to visit both counties to discuss the plans in November.