Deal between Microsoft and Yahoo is again gearing up and catching heat. The two companies have again started taking the deal ahead and talks are on aggressively between the two as per the sources.

Activist investor Carl Icahn spoke out in favor of a search deal between Yahoo Inc and Microsoft Corp, as talks between the two companies appeared to regain momentum.

Icahn declined to comment on the state of any negotiations between Yahoo and Microsoft. He had tried to broker a partnership between the two companies last year, when talks on Microsoft's $47.5 billion takeover bid for Yahoo fell apart.

Here is what Icahn told to Reuters in a phone interview: "I've been a strong advocate of getting a search deal done with Microsoft," "It would enhance value if a deal got done, because of the synergies involved,"

Microsoft and Yahoo are close to a long-discussed search and online advertising deal, which could be announced in the next week according to sources.

AllThingsDigital blog said a deal may involve Microsoft paying Yahoo several billion dollars upfront to take over its search advertising business and guarantee certain payments back to Yahoo.

The latest discussions involve a partnership in which Microsoft would handle search capabilities for Yahoo, while Yahoo could potentially handle online advertising for the two online sites.