According to reports Ericsson will pick up a 50% plus one share stake in the unit, which specialises in mobility, video and wireless kit and maintains a hefty R&D operation as well.
Last July Ericsson emerged victorious in a bidding war for Nortel's wireless CDMA and LTE business with its Scandinavian rival Nokia Siemens, after throwing its hat into the ring at the last minute.
The Swedish communications giant, which was agitating for more business in North America, stumped up a little over $1bn for the wireless unit.
It is not yet known how much a controlling stake in LG-Nortel will set it back, but the assets should be complementary to the Nortel wireless business. The JV currently leads the sophisticated South Korean mobile market.