Formal:
* 他们两个人正在谈话 (tāmen liǎng ge rén zhèngzài tán huà) - This literally means "the two people are talking."
* 两人正在交谈 (liǎng rén zhèngzài jiāo tán) - This means "the two are engaging in conversation."
Informal:
* 他们俩在聊天 (tāmen liǎ zhài liáo tiān) - This means "the two of them are chatting."
* 他们两个在说话 (tāmen liǎng ge zài shuō huà) - This means "the two of them are talking."
Other options:
* 他们正在对话 (tāmen zhèngzài duì huà) - This means "they are having a dialogue."
You can choose the most appropriate phrase based on the context and the formality of the situation.