In this paper, combinatorial design followed by randomized merging strategy is applied to key predistribution in sensor nodes. A transversal design is used to construct a (v, b, r, k) configuration and then randomly selected blocks are merged to form the sensor nodes. We present detailed mathematical analysis of the number of nodes, number of keys per node and the probability that a link gets affected if certain number of nodes are compromised. The technique is tunable to user requirements and it also compares favourably with state of the art design strategies. An important feature of our design is the presence of more number of common keys between any two nodes. Further, we study the situation when properly chosen blocks are merged to form sensor nodes such that the number of intranode common key is minimized. We present a basic heuristic for this approach and show that it provides slight improvement in terms of certain parameters than our basic random merging strategy.