Coleg Gwent, which has a campus at Crosskeys, and Ystrad Mynach College could merge as part of a shake-up of post 16 education.
The governors of the two colleges have entered into talks about a possible merger as part of a wider alliance with the University of Wales, Newport.
The three organisations have said it could lead to a merger of all three in the longer term.
Bryn Davies, the principal of Ystrad Mynach College, said: “Clearly, there is much work to be done if we are to achieve this vision of transforming post-16 education and training in South East Wales.
“We believe this is the right way forward and we are confident we will get the backing of the Welsh Assembly Government.”
Coleg Gwent principal Howard Burton said: “This is an opportunity that simply must be explored – we cannot afford to miss out on the benefits such an alliance will bring to learners throughout South East Wales.”
The move has the backing of Caerphilly AM Jeff Cuthbert.