Edale Aged Care Centre in Marton enters merger talks to help stay afloat.

Edale Aged Care Centre in Marton is considering a merger.

A merger has been proposed to save Rangitikei's last rest home.

The Edale Trust board, which operates the Edale Aged Care Centre in Marton, has begun talks with Masonic Village Trust about a possible merger.

Masonic Village Trust runs 11 aged care facilities throughout the lower North Island.

"We're just holding discussions at the moment," Edale Trust Board chair Dudley Brown said.

"We haven't done our due diligence yet but our talks are certainly positive and we align well together.

"We certainly see the advantages in being in with a large provider. That'll help secure the future of Edale, which is good."

The future of Edale has been up in the air recently.

In April it closed its dementia unit, cut staff and went to the Rangitikei District Council to ask for a loan after losing about $200,000 to alleged fraud.

The loan request is now on hold until proposed merger talks have finished which Mr Brown said could be by the end of the year.

Mr Brown said a merger could also help Edale expand its facilities and capacity.

"These bigger providers have the capital to be able to do that. They're a charitable organisation the same as the Edale Trust board so our ethos is very similar."

Edale is the only rest home between Taumarunui, Whanganui and Feilding.

Lancewood Rest Home in Bulls closed in January last year and Taihape's rest home closed in 2010.

"I think it's important for Rangitikei to have an aged care facility and I think the Masonic Village Trust is a great provider to be in with," Mr Brown said.