A report claims that Google and Verizon are negotiating a far-reaching deal which will make Google the default search provider on all Internet-enabled Verizon handsets.

The two have been in talks for around a year, but Verizon was reluctant to yield to Google's requests of saving search histories.

The WSJ, which reported the story citing unnamed sources, says that Verizon would receive a share of the revenue from clicks on AdWords advertising that follows each search result, but the way the money will be split is one of the issues in negotiation.

The deal will also mark a significant step forward in the relations between the two companies. They have been at odds over the 700MHz auction, as Verizon has made every effort not to obey by the open access rules mandated by the government, rules which were backed by Google and others.

Earlier this month, Verizon managed to overcome the prospect of a strike for now, extending a deadline for talks with the company's two largest unions.

The second-biggest U.S. telephone company needs to negotiate a new labor contract covering 65,000 workers. The last Verizon strike occurred in 2000, when about 85,000 workers went on strike for about three weeks.