Though not yet officially announced, reports have surfaced that FCC Chairman Martin supports the merger of XM and Sirius satellite radio companies, and will recommend that the Commission vote to push the transaction through.

The willingness of XM and Sirius to comply with demands set forth for their merger appears to be working. FCC Chairman Kevin J. Martin said on Sunday that he will support the combination of the two satellite radio providers given their adherence to certain stipulations.

As conditions for the Department of Justice’s approval of the deal last March, the combined satellite radio entity must put a cap on subscription prices for three years, offer a la carte programming (where subscribers select which content they get), provide firmware-upgradeable interoperable receivers, open its standards to third-party device manufacturers, and devote 8% of its spectrum (24 channels) to noncommercial and minority-interest programming. Those conditions are based upon promises that both companies made to legislators and DOJ officials between March 2007 and January 2008.

A merger of the two companies will reverse the FCC’s 1997 licensing agreement which dictated that the two companies never become one. Opposition groups such as the National Association of Broadcasters have been pressuring the FCC to challenge the merger, as it is one of the final regulatory bodies the two companies must face before they can proceed. When the Commission finally votes — which the Washington Post says could take place this week — the merger must be approved by three of five commissioners.