Yahoo and Microsoft, which had several sessions of on and off futile merger/partnership talks last year, are reportedly in talks about internet advertising agreement now. The sources close to the two companies have reported that the two companies are discussing an online advertising deal.   

According to technology blog AllThingsD, the sources have reported that the talks between the two companies began a few weeks ago, during a meeting between Yahoo’s new CEO Carol Bartz and Microsoft CEO Steve Ballmer.  

The sources have also reported that Bartz and Ballmer also met last week to discuss the online advertising agreement. However, the sources have said that the talks are in early stages and may not result into an agreement.

According to the sources, if the talks between Yahoo and Microsoft materialize, Microsoft will sell search ads for Yahoo, under the partnership deal, and in return, Yahoo will sell display ads on Microsoft properties.

However, there still aren’t strong evidences about the authenticity of Yahoo, Microsoft talks. It’s unclear whether the talks between the companies are really going on or these are mere market rumors. Yahoo and Microsoft however have declined to comment on the reported advertising deal talks.