It is understood the merger is a fresh attempt at destabilising power sharing at Stormont and will come in the form of intensified attacks on security forces.
According to the Guardian newspaper, Republican Action Against Drugs, the vigilante group which is most active in the Derry area, is to join with the Real IRA and other smaller groupings – but the Continuity IRA will not be joining.
The new organisation released a statement to the newspaper in which it claimed a “unified structure, under a single leadership” had been formed.
It continued saying that they would be “subservient to the constitution of the Irish Republican Army”.
Henry McDonald, the paper’s Ireland correspondent, said it was an attempt by dissident factions “to become much more structured and centralised.”