San Francisco, July 29 (DPA) Microsoft and Yahoo will announce a search and advertising partnership Wednesday, capping months of negotiations aimed at challenging the Internet dominance of Google, The Wall Street Journal reported late Tuesday.

The paper's blog AllThingsD said that under the terms of the deal, Yahoo will use Microsoft's new search engine on its sites, while Yahoo would handle some advertising sales for Microsoft. The two companies will share search-related advertising revenue, the report said.

Neither companies would comment on the reports.

Google controls some 65 percent of the US Internet search market, with Yahoo ranked a distant second with 19.