Two major environmental groups have emerged as recommended preferred bidders to take on maintenance, bin collection and cleaning contracts in four south and south-west London boroughs.

Veolia and The Landscape Group (TLG) are likely to be the new providers of various environmental services on behalf of Sutton, Merton, Croydon and Kingston councils, the authorities announced.

Veolia, which currently collects the bins in Croydon and Kingston, is bidding to provide waste collection, street cleaning and winter gritting in all four areas.

And TLG, a horticultural, landscaping and grounds maintenance specialist, hopes to take on the maintenance of parks and cemeteries in Sutton and Merton.

The councils involved estimate the eight-year contracts will save them more than the £30m target they had set themselves.

If the companies are awarded the contracts, the recycling and waste service is expected to be rolled out in April next year in Sutton, in October 2018 in Croydon and Merton, and in 2022 in Kingston - providing the boroughs all approve.

Cllr Stuart Collins, chairman of the South London Waste Partnership joint committee, said: “The four boroughs will spend a combined £38 million on delivering waste collection, street cleaning, winter gritting, parks and cemeteries maintenance services this year.

“We identified that by working together and harmonising services across the region we could all make significant savings and deliver high quality services that local people value.”

The final decision will be made during Croydon Council’s cabinet committee on July 11 after committees in all of the partner boroughs consider recommendations at meetings in June.

The partnership’s joint waste committee is set to meet on June 7 to review the outcome of the procurement process, which started in early 2015.

The ‘preferred bidder’ status will only be confirmed if all the relevant committees agree on the recommendations.