After the failed deal between Yahoo and Microsoft earlier last year that forced then Yahoo chairman Jerry Yang to resign, the software giant is now back again, soliciting fresh deals with the new management of the search company, reports The Times.

Citing an interview with Kevin Turner, chief operating officer of Microsoft, he has reportedly given a peace offering to Carol Bartz, the new chief executive of Yahoo!, indicating Microsoft’s interest in Yahoo for a smaller deal regarding a partnership on search functions.

Further he added that any transaction with Yahoo would make economic sense to both the parties and therefore he has intimated it with their desire of partnering.

Last year Yahoo!, under the leadership of Jerry Yang, turned down a deal with Microsoft, which offered $47.5 billion for the internet business, which later on led to forced resignation of Mr. Yang, following revolt by shareholders headed by Carl Icahn, the billionaire investor.

According to other reports, Microsoft is carrying tests to roll out new online search service, codenamed kumo.com.

In the US Search market, Microsoft stands third with 8.5 per cent of all searches; chasing Google''s 63 percent and Yahoo's 21 percent.

The global share of Google is further much bigger.