(iChinaStock)Netease may consider to sell its Youdao search engine to software giant Microsoft, according to a report from Chinese tech site DoNews today.

The report, citing an anonymous source, said Netease may reach an agreement with Microsoft in which Netease would handover its search engine business in exchange for some shares in MSN China, Microsoft’s Internet joint venture in China.

In 2010, there were reports saying that Netease is in talks to buy into MSN China by purchasing the 50% share owned by the current Chinese partner.