Microsoft has reportedly asked HTC to add its Windows operating system to the smartphone maker's Android based devices at no, or very little cost.
In an indication of Window's struggle to get a foothold in the mobile market, even after its purchase of Nokia, sources told Bloomberg that Microsoft's head of operating systems Terry Myerson personally spoke to HTC about a deal.
He is looking for HTC to offer consumers Windows Phone as an alternative option to Google's Android. It is unclear whether a device would be able to run both Windows and Android concurrently, or if users would choose an OS during setup.
Windows Phone currently holds just 3.7 per cent of the smartphone market.
Although HTC has made Windows based smartphones in the past, it has not released a new device since June and reportedly has no current plans to release one in the near future. All HTC's flagship devices, including the HTC One, run on Android.
Myerson suggested slicing or even getting rid of the any license fee payments to Microsoft in order to reel HTC in, the sources said, adding that the talks are still in the early stage with no decision having been made as of yet.
Whilst Windows has struggled to keep up with rival Apple through the mobile revolution, HTC has its own problems, something which Myerson may be trying to capitalise on through the offer of a cut price licensing deal.
Despite, the HTC One being widely regarded as one of the best smartphones on the market, HTC is struggling to turn the critical acclaim into profits.
Since 2011, the Taiwanese firm has lost 90 per cent of its market value, whilst its earnings for the second quarter of 2013 were down 83 per cent year on year.