New York - US software giant Microsoft could become the default internet search provider on Verizon Wireless mobile phones as both companies move closer to an agreement, the Wall Street Journal reported Wednesday.

The deal involves a revenue-sharing model between Microsoft and Verizon from advertisements shown in response to internet searches made on cellphones. This would guarantee Verizon payments of approximately 550 million dollars to 650 million dollars over five years, the report said.

The revenue would be about twice that offered by Google, which has also been holding similar discussions with Verizon in an attempt to cash in on the increasingly lucrative mobile internet market. Sources close to the talks said that Verizon is more inclined to seal the deal with Microsoft, which is offering better financial incentives, but the talks with Google are also continuing.

Verizon CEO Ivan Seidenberg told broadcaster CNBC last week that a decision would be made soon.

In separate negotiations, Microsoft is trying to have its Windows Mobile software installed in Verizon devices. But it wasn't clear whether Microsoft would allow Verizon to use the software for free or pay the wireless provider to install it, the report said.