Social networking website Facebook may partner with popular voice over IP service Skype to offer a number of joint services ranging from integrated SMS, voice & video solutions and possibly using Facebook Connect as the overarching identity management architecture.
Sources close to both companies told Kara Swisher of D: All Things Digital that both companies want to benefit from each other's strengths.
Skype and Facebook have roughly the same number of registered users worldwide (around 550 million each) with Facebook reigning supreme in the US and Skype being stronger abroad.
The integration of Facebook features in Skype will be available within weeks with the announcement expected to bolster Skype's stocks when the company goes on IPO.
Skype does have the chequered past when it comes to integrating its core feature - the ability to make and receive calls - with other services.
Ebay spent billions of dollars to acquire Skype and try to absorb it over a number of years but did not succeed, and ending up with Meg Whitman being outed as Ebay's CEO.
It is not known whether Facebook will start embedding Skype apps on its website or whether Facebook will exist as a separate entity on Skype's VoIP client.
It's worth noting that Skype did have a similar agreement with Myspace which allowed users to make calls from within the Murdoch-owned website.