Microsoft and Yahoo are discussing possible deals in which they would sell advertising for each other, the Wall Street Journal reported on Friday.

Microsoft CEO Steve Ballmer speaks during a news conference at Mobile World Congress in Barcelona, Feb. 16, 2009.(Xinhua/Reuters Photo)

One idea that has been discussed is Microsoft selling ads alongside Yahoo’s search results and Yahoo selling some graphical ads on Microsoft properties.

However, sources cited by the newspaper cautioned that it is unclear whether the talks, which could produce a collaboration without a full-fledged acquisition or major asset sale, will result in an agreement.

According to the newspaper, both Yahoo and Microsoft declined to comment about the talks.

Talks between the two companies were first reported earlier Friday by All Things Digital, a technology blog site owned by Dow Jones, which said the discussions are “preliminary and wide-ranging,” covering advertising as well as search partnerships.

Bartz took the CEO reins of Yahoo in January from the company’s co-founder Jerry Yang, who last year rejected Microsoft’s offer of47 billion U.S. dollars to buy Yahoo.

Ballmer has said repeatedly that Microsoft is still interested in striking a deal with Yahoo on search business.

VietNamNet/Xinhuanet