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"In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo Inc.
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, Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business," a statement posted on its website said.
"Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo.
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"Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions.
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It said there was no guarantee the talks would lead to a transaction.
Microsoft offered to buy Yahoo for 44.
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6 billion dollars in stock and cash on January 31, but withdrew the offer on May 3, saying Yahoo refused to budge despite the software giant upping its offer to nearly 50 billion dollars.
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Corporate raider Carl Icahn this week accused the board of Yahoo of havin