Software giant Microsoft has put an alternative deal to Yahoo, rather than a full acquisition.
But reports said the move was unlikely to win favour with financier Carl Icahn, who last week launched a proxy campaign to replace Yahoo's board with directors who would re-open talks with Microsoft.
Icahn said Yahoo had acted irrationally in refusing the giant software company's $47.5 billion bid.
Microsoft walked away from its pursuit of Yahoo two weeks ago after three months of negotiations when Yahoo's board rejected Microsoft's sweetened offer of $33 a share, saying the company was worth at least $37 a share.
Microsoft's statement on Sunday said it was 'considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo'. It did not clarify what that alternative might be.
The New York Times reported that Microsoft and Yahoo may form a partnership or joint venture for search-related advertising to take on Google, which dominates the search market. For its part, Yahoo continues to talk with Google about a search advertising partnership.
