Search engine Yahoo! Inc. is believed to be in talks with Vodafone Group about the distribution of its mobile search products in Europe.

The contract, which is yet to be inked down, will make Yahoo’s mobile search product as the default software on Newbury handsets.

Yahoo, who is desperately looking catch up with Google in Internet advertising, has had similar deals with T-Mobile and AT&T Inc. earlier last year.

Besides, it has affiliations in Europe with wireless operators including Deutsche Telekom AG’s T-Mobile unit and Telefonica SA’s O2 unit, Zealous Wiley.

The agreement, if materialized, will expand Yahoo and Vodafone’s existing partnerships that include a contract for Yahoo to sell advertising on Vodafone’s handsets in the U.K.