The merger between the owners of the New Zealand Herald and the country’s most popular news website Stuff is back on the table two years after it was rejected by the high court.

New Zealand Herald publisher NZME has confirmed it is in talks with Nine Entertainment, which put Stuff up for sale after it took control of Fairfax Media last year.

Stuff reported that a “Kiwishare” model, which would purportedly protect New Zealand journalism and jobs by keeping the media properties separate, may be the key to getting the merger across the line this time.

NZME, or New Zealand Media and Entertainment, is a large media company with radio, digital, e-commerce and print brands which reaches an audience of 3.2m.

Nine Entertainment sold 160 former Fairfax regional papers, including the Canberra Times and the Illawarra Mercury, to the former Domain boss Antony Catalano and investors for $115m in April, but has been unable to offload Stuff, which does not form part of its national strategy.

Nine Entertainment declined to comment on reports it was in talks with NZME.

NZME, which owns the Herald newspaper as well as a slew of local papers and radio stations, told the NZX/ASX it had put a proposal to the government regarding a possible transaction but cautioned it was early days.

“NZME confirms that it is in discussions with Stuff’s owners Nine and has put a proposal to the government regarding a possible transaction,” the note said.

“However, NZME notes that these discussions are preliminary and stresses that no decision has been made in relation to any potential transaction.

“There can be no certainty at this stage that these discussions will result in any transaction.

“NZME remains in compliance with its continuous disclosure obligations and will provide further information to the market as required.”

The high court rejected the proposed merger in 2017, saying it would have concentrated media ownership to such a degree that it threatened the country’s democracy. The two media companies would have controlled 90% of the nation’s media.

The high court knockback followed a rejection by the Commerce Commission of the proposed merger on similar grounds. The commission said it would have threatened media plurality.

“We consider that it is appropriate to attribute material importance to maintaining media plurality,” Justice Robert Dobson said.

“It can claim status as a fundamental value in a modern democratic society … The risk is clearly a meaningful one and, if it occurred, it would have major ramifications for the quality of New Zealand democracy.”

A combined media company would include a number of print titles, the country’s biggest digital news site and several radio stations.