The two bodies, representing timber importers and merchants/traders respectively, have been moving toward a union since 2011.
ETTF president Andreas von Möller said that merger was a logical move.
"The trend has been toward a concentration of European timber trade bodies to get our views across to government, and notably the EU," he said. "There are so many more issues we need to address together today. The most recent example is the EU Timber Regulation (EUTR). If the ETTF had not existed before, we would have had to invent it for the EUTR."
He added that the members of the merged organisation, which will be known as the ETTF, accounted for 80-90% of timber traded in Europe.
FEBO president Marc Chambost agreed the industry would be stronger in a single organisation.
"European importers and merchants/traders have so many goals in common, and we are far are more likely to achieve them working together," he said. "In particular we have a huge opportunity to capitalise on the carbon and wider environmental performance benefits of timber."
He added that the new merged body would retain divisions to represent the specific interests of merchants and importers.
