According to a report by the Times of London earlier last week, Microsoft and Yahoo could be looking at a new search deal, in an effort to expand Microsoft’s online search presence, whilst keeping Yahoo alive.

The report, which has not yet been confirmed by either Microsoft or Yahoo, is rumoured to have priced the Yahoo! search business at US$20 billion, with both companies still in early stages of negotiations.

Steve Ballmer has commented that Microsoft has moved on from buying out all of Yahoo!, but has said that the search division would still be an interesting purchase.