According to reports, the two companies have submitted an adjusted proposal to the US Department of Justice to help the chances of the deal being passed by regulators. In terms of the deal, Google ads would be displayed in Yahoo! searches.
The revisions also put a 25% cap on the percentage of Yahoo! search revenue that can be generated from Google and would allow Google advertisers to opt out of appearing on Yahoo!, reports say.
The deal would bolster Yahoo!'s position in the market as it fends off Microsoft, which made a bid for the company earlier this year. But advertisers are wary that the deal would strengthen Google's search advertising stranglehold, eliminating competition and pushing up prices.
July 2008 comScore results showed Google and Yahoo!'s combined search advertising business comprised 80% of the US market.
Neither company confirmed the reports.
Separately, Yahoo! said Scott Moore, senior vice-president of US audience, is leaving the company to "pursue other opportunities". He will be replaced by Jeff Dossett, previously executive producer and general manager for the MSN Media Network.