Merrill Lynch & Co. is close to an agreement to renew its headquarters lease at lower Manhattan’s World Financial Center, the Wall Street Journal reported on its Web site.

The world’s biggest brokerage is discussing a five-year lease renewal with its landlord, Brookfield Properties Corp., the Journal said, citing several people it didn’t identify familiar with the matter. A lease hasn’t been signed and the deal could still fall through, the Journal said.

The chief executive officer of Merrill, John Thain, and his management team have decided a five-year renewal after its current lease expires in 2013 would give it time to work through a difficult business climate, the newspaper said. The company may still consider building a new headquarters in the future, the Journal said, citing a single person it said was familiar with Mr. Thain’s thinking.

In October, Merrill was in negotiations with Vornado Realty Trust for a new headquarters tower at the site of the Hotel Pennsylvania in midtown, across from Pennsylvania Station. Those talks broke off after then-chief executive officer Stan O’Neal resigned under pressure due to $8.4 billion of losses in mortgage investments.

Calls by Bloomberg News to a Merrill spokeswoman, Selena Morris, and a Brookfield spokeswoman, Melissa Coley, weren’t immediately returned. An outside Vornado spokeswoman, Roanne Kulakoff, declined in an e-mail to comment.