No final Yahoo-Google ad agreement yet: source

By Anupreeta Das

SAN FRANCISCO (Reuters) - Google Inc and Yahoo Inc are still hammering out the intricacies of a potential advertising and search deal, and no final agreement has been reached yet, a person close to Google said on Monday.

The two sides are also sharing their plans for a potential deal with antitrust regulators, the source said.

Yahoo and Google are "vetting any potential agreement with antitrust regulators," said the source, who was not authorized to speak on the record about the confidential discussions.

Other sources previously told Reuters a deal between Yahoo and Google, in which Yahoo carries advertising from Google alongside its search results, could be announced this week.

The source close to Google did not say when a tie-up, if any, would be announced.

Google and Yahoo raised antitrust concerns, including questioning from the U.S. Department of Justice, after Yahoo announced in early April it was conducting a two-week test where 3 percent of Yahoo's U.S. searches would display ads using Google's AdSense system.

Google is the top search engine, and a tie-up with Yahoo, the No. 2, would give the two companies more than 80 percent of the search market, according to ratings company Hitwise.

The two companies have said they are cooperating fully with antitrust authorities.