Motorola and Nortel Networks are in talks to combine their wireless infrastructure units, the Wall Street Journal reported, quoting people familiar with the situation.
The talks could create a joint venture with sales of around $10 billion, combining businesses that make network equipment for wireless phone carriers, the newspaper said.
Motorola said in January it was exploring strategic options for the future of its handset division, which could include selling the unit. The Journal said Motorola's talks with Nortel were separate to any plans for its handset unit.
Motorola and Nortel were not immediately available for comment.