Microsoft and Nokia may announce a strategic alliance within days as the two companies, which are struggling against Apple and Android, are rumoured to announce a software partnership.
According to the New York Times, the deal would help both Microsoft and Nokia and the rumour had an immediate positive impact on the share price of the world's biggest mobile phone manufacturer.
Many analysts have called upon Nokia CEO Stephen Elop, who worked for Microsoft as the head of Business Division, to collaborate with his former employee to deliver a compelling hardware and software solution.
Such a move would be a radical departure from Nokia's current stand; the phone manufacturer uses Symbian on all its smartphones and is planning to use Meego, which is the fusion of Intel's Moblin and its own Maemo OS.
If the announcement comes on the 11th of February as predicted by the New York Times, it will happen only three days before the Mobile World Congress in Barcelona.
Nokia and Microsoft have been partners for a long time; Nokia uses Microsoft Applications on some phones while Microsoft licenses data from Navteq - which is owned by Nokia - for Bing Maps.
Partnering with Microsoft will almost certainly mean that Nokia will have to give up Meego and Symbian; there's also the remote possibility that Microsoft either acquires Nokia or becomes a shareholder.