Now its available in v8, you can reach via http://tidyway.blogspot.in/2014/12/merge-duplicate-partners-in-odoo-v8.html
I don't think there is a way to automatically do this today.
You would either have to write a custom module, or manually go into the database (not recommended), that searches the entire database, finds all instances of one supplier and then changes it to to point to the other supplier entry.
This is a duplicate of
Answer is not yet but OpenERP is currently developing one in trunk and according to the answer from Fabien it should land in 7.0
It should to the trick for suppliers too
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