diff --git a/src/app/layout/Layout.module.css b/src/app/layout/Layout.module.css
index 06692d4f..0bf1d64f 100644
--- a/src/app/layout/Layout.module.css
+++ b/src/app/layout/Layout.module.css
@@ -39,6 +39,7 @@
 .sidebar.hide {
     width: 0px;
     height: 0px;
+    visibility: hidden;
 }
 
 .pageTitle {
diff --git a/src/components/merge/BaseMergeFields.tsx b/src/components/merge/BaseMergeFields.tsx
new file mode 100644
index 00000000..57925d2d
--- /dev/null
+++ b/src/components/merge/BaseMergeFields.tsx
@@ -0,0 +1,66 @@
+import React from 'react'
+import { DisplayableModel } from '../../types/models'
+import {
+    ModelMultiSelectField,
+    ModelMultiSelectFieldProps,
+} from '../metadataFormControls/ModelMultiSelect'
+import css from './MergeFields.module.css'
+import { IconArrowRight24 } from '@dhis2/ui'
+import { useField } from 'react-final-form'
+
+type Optional<T, K extends keyof T> = Partial<Pick<T, K>> & Omit<T, K>
+
+type BaseSourceFieldProps = Optional<
+    ModelMultiSelectFieldProps<DisplayableModel>,
+    'name'
+>
+
+export const BaseSourcesField = (props: BaseSourceFieldProps) => {
+    const targetValue = useField<DisplayableModel[]>('target', {
+        subscription: { value: true },
+    }).input.value
+
+    return (
+        <ModelMultiSelectField
+            name="sources"
+            label="Sources"
+            maxHeight="150px"
+            // use select to filter out the target from available sources
+            select={(availableSources) =>
+                availableSources.filter((s) => s.id !== targetValue?.[0]?.id)
+            }
+            {...props}
+        />
+    )
+}
+
+export const BaseTargetField = (props: BaseSourceFieldProps) => {
+    const sourcesValues = useField<DisplayableModel[]>('sources', {
+        subscription: { value: true },
+    }).input.value
+
+    return (
+        <ModelMultiSelectField
+            name="target"
+            label="Target"
+            maxHeight="150px"
+            select={(availableTargets) =>
+                availableTargets.filter(
+                    (t) => !sourcesValues.some((s) => s.id === t.id)
+                )
+            }
+            {...props}
+        />
+    )
+}
+
+export const MergeSourcesTargetWrapper = ({
+    children,
+}: React.PropsWithChildren) => {
+    return (
+        <div className={css.targetSourceWrapper}>
+            {children}
+            <IconArrowRight24 />
+        </div>
+    )
+}
diff --git a/src/components/merge/MergeFields.module.css b/src/components/merge/MergeFields.module.css
new file mode 100644
index 00000000..3edd28d4
--- /dev/null
+++ b/src/components/merge/MergeFields.module.css
@@ -0,0 +1,25 @@
+.targetSourceWrapper {
+    display: grid;
+    /* grid is used to place the arrow between the children*/
+    grid-template-areas: 'source arrow target';
+    grid-template-columns: minmax(380px, max-content) 24px minmax(
+            380px,
+            max-content
+        );
+    gap: var(--spacers-dp8);
+    background-color: var(--colors-grey100);
+    padding: var(--spacers-dp16);
+    justify-content: start;
+    align-items: center;
+    width: min-content;
+}
+
+.targetSourceWrapper > div {
+    max-width: 380px;
+}
+
+.targetSourceWrapper > svg {
+    grid-area: arrow;
+    color: var(--colors-grey700);
+    margin-block-start: 19px; /* 19px is the default height of the field label */
+}
diff --git a/src/components/merge/index.ts b/src/components/merge/index.ts
new file mode 100644
index 00000000..9bdb26cb
--- /dev/null
+++ b/src/components/merge/index.ts
@@ -0,0 +1 @@
+export * from './BaseMergeFields'
diff --git a/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelect.tsx b/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelect.tsx
index 10eeb58f..5f140a70 100644
--- a/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelect.tsx
+++ b/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelect.tsx
@@ -40,8 +40,6 @@ export const ModelMultiSelect = <TModel extends DisplayableModel>({
     ...baseModelSingleSelectProps
 }: ModelMultiSelectProps<TModel>) => {
     // keep select in ref, so we dont recompute for inline selects
-    const selectRef = useRef(select)
-    select = selectRef.current
     const [searchTerm, setSearchTerm] = useState('')
     const searchFilter = `identifiable:token:${searchTerm}`
     const filter: string[] = searchTerm ? [searchFilter] : []
@@ -66,12 +64,7 @@ export const ModelMultiSelect = <TModel extends DisplayableModel>({
         selected,
     })
 
-    const resolvedAvailable = useMemo(() => {
-        if (select) {
-            return select(availableData)
-        }
-        return availableData
-    }, [availableData])
+    const resolvedAvailable = select ? select(availableData) : availableData
 
     const handleFilterChange = useDebouncedCallback(({ value }) => {
         if (value != undefined) {
diff --git a/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelectField.tsx b/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelectField.tsx
index 63880fc8..b9468252 100644
--- a/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelectField.tsx
+++ b/src/components/metadataFormControls/ModelMultiSelect/ModelMultiSelectField.tsx
@@ -15,7 +15,7 @@ type OwnProps<TModel extends DisplayableModel> = {
     onChange?: ModelMultiSelectProps<TModel>['onChange']
 }
 
-type ModelMultiSelectFieldProps<TModel extends DisplayableModel> = Omit<
+export type ModelMultiSelectFieldProps<TModel extends DisplayableModel> = Omit<
     ModelMultiSelectProps<TModel>,
     'selected' | 'onChange'
 > &
@@ -47,10 +47,10 @@ export function ModelMultiSelectField<TModel extends DisplayableModel>({
             <ModelMultiSelect<TModel>
                 {...modelSingleSelectProps}
                 selected={input.value}
-                onChange={(selected) => {
-                    input.onChange(selected)
+                onChange={(payload) => {
+                    input.onChange(payload.selected)
                     input.onBlur()
-                    onChange?.(selected)
+                    onChange?.(payload)
                 }}
                 query={query}
             />
diff --git a/src/pages/indicatorTypes/merge/IndicatorTypeMerge.tsx b/src/pages/indicatorTypes/merge/IndicatorTypeMerge.tsx
index 9b2a8a17..9a5600b2 100644
--- a/src/pages/indicatorTypes/merge/IndicatorTypeMerge.tsx
+++ b/src/pages/indicatorTypes/merge/IndicatorTypeMerge.tsx
@@ -1,11 +1,29 @@
 import { useDataEngine } from '@dhis2/app-runtime'
 import i18n from '@dhis2/d2-i18n'
-import { Button, ButtonStrip, CheckboxFieldFF, RadioFieldFF } from '@dhis2/ui'
+import {
+    Button,
+    ButtonStrip,
+    CheckboxFieldFF,
+    FieldGroup,
+    RadioFieldFF,
+} from '@dhis2/ui'
 import React, { useMemo } from 'react'
 import { Field, Form } from 'react-final-form'
 import { z } from 'zod'
-import { ModelTransferField } from '../../../components'
+import {
+    ModelTransferField,
+    StandardFormSection,
+    StandardFormSectionTitle,
+} from '../../../components'
 import { HorizontalFieldGroup } from '../../../components/form'
+import {
+    BaseSourcesField,
+    BaseTargetField,
+    MergeSourcesTargetWrapper,
+} from '../../../components/merge'
+import { ModelMultiSelectField } from '../../../components/metadataFormControls/ModelMultiSelect'
+import { ModelSingleSelect } from '../../../components/metadataFormControls/ModelSingleSelect'
+import { ModelFilterSelect } from '../../../components/sectionList/filters/filterSelectors/ModelFilter'
 import { getDefaults } from '../../../lib'
 import { mergeFormSchema, validate } from './indicatorTypeMergeSchema'
 
@@ -52,46 +70,60 @@ export const IndicatorTypeMergeForm = ({
                         padding: '16px',
                     }}
                 >
-                    <ModelTransferField
-                        name="sources"
-                        query={{
-                            resource: 'indicatorTypes',
-                            params: {
-                                fields: 'id,displayName',
-                                filter: values.target
-                                    ? `id:!in:[${values.target}]`
-                                    : [],
-                            },
-                        }}
-                        label="Source indicator types"
-                    />
-                    <ModelTransferField
-                        name="target"
-                        label="Target indicator type"
-                        query={{
-                            resource: 'indicatorTypes',
-                            params: {
-                                fields: 'id,displayName',
-                                filter:
-                                    values.sources.length > 0
-                                        ? `id:!in:[${Array.from(
-                                              values.sources.map((s) =>
-                                                  typeof s === 'string'
-                                                      ? s
-                                                      : s.id
-                                              )
-                                          )}]`
+                    <MergeSourcesTargetWrapper>
+                        <BaseSourcesField
+                            query={{
+                                resource: 'indicatorTypes',
+                                params: {
+                                    fields: 'id,displayName',
+                                    filter: values.target
+                                        ? `id:!in:[${values.target}]`
                                         : [],
-                            },
-                        }}
-                    />
+                                },
+                            }}
+                        />
+                        <BaseTargetField
+                            query={{
+                                resource: 'indicatorTypes',
+                                params: {
+                                    fields: 'id,displayName',
+                                },
+                            }}
+                        />
+                    </MergeSourcesTargetWrapper>
 
-                    <Field
-                        component={CheckboxFieldFF}
-                        name="deleteSources"
-                        label={i18n.t('Delete source indicator types')}
-                        type="checkbox"
-                    />
+                    <StandardFormSection>
+                        <StandardFormSectionTitle>
+                            {i18n.t('Merge settings')}
+                        </StandardFormSectionTitle>
+
+                        <FieldGroup
+                            label={i18n.t(
+                                'What should happen to the source indicator types after the merge is complete?'
+                            )}
+                        >
+                            <Field<string | undefined>
+                                component={RadioFieldFF}
+                                name="deleteSources"
+                                label={i18n.t(
+                                    'Keep {{count}} source indicator types',
+                                    { count: values.sources.length }
+                                )}
+                                type="radio"
+                                value={'keep'}
+                            />
+                            <Field<string | undefined>
+                                component={RadioFieldFF}
+                                name="deleteSources"
+                                label={i18n.t(
+                                    'Delete {{count}} source indicator types',
+                                    { count: values.sources.length }
+                                )}
+                                type="radio"
+                                value={'delete'}
+                            />
+                        </FieldGroup>
+                    </StandardFormSection>
                     <ButtonStrip>
                         <Button primary type="submit">
                             {i18n.t('Merge')}
diff --git a/src/pages/indicatorTypes/merge/indicatorTypeMergeSchema.ts b/src/pages/indicatorTypes/merge/indicatorTypeMergeSchema.ts
index c8a19d29..473e1b59 100644
--- a/src/pages/indicatorTypes/merge/indicatorTypeMergeSchema.ts
+++ b/src/pages/indicatorTypes/merge/indicatorTypeMergeSchema.ts
@@ -3,14 +3,10 @@ import { createFormValidate, modelFormSchemas } from '../../../lib'
 
 const { referenceCollection } = modelFormSchemas
 
-export const mergeFormSchema = z
-    .object({
-        sources: referenceCollection.default([]),
-        target: referenceCollection.length(1).default([]),
-        deleteSources: z.boolean().default(false),
-    })
-    .refine((data) => {
-        return 'error!'
-    })
+export const mergeFormSchema = z.object({
+    sources: referenceCollection.default([]),
+    target: referenceCollection.length(1).default([]),
+    deleteSources: z.enum(['keep', 'delete']).default('keep'),
+})
 
 export const validate = createFormValidate(mergeFormSchema)