Google and Yahoo are fighting to save their web advertising deal under consideration by the US Department of Justice.
The two companies signed an online ad revenue sharing deal in June, but Microsoft and others complained the deal would create a monopoly.
Under the deal, Yahoo would run Google ads on its own search pages to boost revenues to satisfy disgruntled Yahoo shareholders after the company rejected a takeover bid by Microsoft.
Google and Yahoo began negotiations with the DoJ earlier this month in an attempt to save the deal.
Just as Google was expected to walk away, The Wall Street Journal reported that the two companies have submitted a revised agreement to the Department of Justice.
The new plan is said to shorten the proposed partnership from 10 years to just two in an attempt to get it approved by US monopoly regulators.
Google and Yahoo shares were little changed in extended trading yesterday after news of the revised deal broke, US media reports said.