Makan Delrahim, who took up the reins at the antitrust division in September after he was confirmed by the Senate, has signaled he isn’t a fan of settlements that force the Justice Department into ongoing monitoring of companies’ behavior.

The two sides are far apart in getting a deal done, increasing the risk that talks could hit an impasse. Without an agreement, the Justice Department would sue to block the merger — with a lawsuit possibly coming as soon as next week, one of the people said. The agency is concerned that AT&T’s ownership of Time Warner content could raise the costs of its pay-TV rivals, according to one of the people.

The Justice Department said it’s “committed to carrying out its duties in accordance with the laws and the facts,” according to a statement. “Beyond that, the Department does not comment on any pending investigation.”

AT&T is ramping up preparations to fight the Justice Department in court if it comes to that, instructing its legal team to prepare for battle, some of the people said. The timing of the deal, originally expected to close by the end of the year, is now uncertain, AT&T Chief Financial Officer John Stephens said Wednesday.