Social networking giant, Facebook has indicated that it is planning to take over a Israel-based GPS mobile navigation app Waze in a deal valued at US$ 1 billion.

Some reports suggest that discussions are taking place between the companies but no deal has been finalised as yet. Waze has more than 40 million users and its integration with Facebook will allow the social networking giant to expand into the new field of navigation and possibly add a new source of income for the company looking to create avenues of generatingrevenues.

Waze is described by the company as an app that brings together "the world's largest community of drivers who work together to fight traffic, and save time and gas money on their daily commute." The report said that Facebook could integrate the app in its mobile offerings and expand its presence in the crowded app market.

The acquisition is expected to be the biggest deal for Facebook after previous year's Instagram acquisition deal. Initially the Instagram deal was valued at US$ 1 billion but later the amount was fixed at US$ 747 million due to a fall in the value of shares.