Once again showing its interest in Yahoo, Microsoft revived its talks with Yahoo and proposed a new deal. Microsoft said Sunday that it is considering doing an unspecified deal with Yahoo, but it's not seeking another acquisition of the Internet portal - at least for now.

In a statement, the Redmond, Washington based software maker said that it has "raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!."

Microsoft declined to provide details of the deal that it proposed to the Sunnyvale, Calif.-based Web portal, but the transaction likely involves Yahoo!'s search advertising business. The deal could be a partnership in which Yahoo! would its search ads to Microsoft. Interestingly, Yahoo! has also been in discussions with Google, about such an outsourcing partnership.

On the Microsoft’s proposed deal, Yahoo! said in a statement that it had responded to Microsoft's latest overture by telling the software giant that it's not interested in being acquired at this time, but it's "open to pursuing any transaction which is in the best interest of our stockholders."