Publicis Groupe is closing in on an acquisition of Razorfish, Microsoft’s digital advertising agency, and could agree final terms by early next week, according to people familiar with the negotiations.

The situation remains fluid, but the French communications company behind Digitas, Leo Burnett and Zenith Optimedia has taken the lead in a contest with Dentsu, the Japanese advertising group that owns 15 per cent of Publicis, these people said.