Sources from both Microsoft and Yahoo confirm that a Sunday Times of London story suggesting 20 billion dollars partnership between the two about to happen is “fictitious wholly”.

The story details the deal that Microsoft would obtain a 10-year operating agreement to manage the search business and it would also receive a two-year call option to buy the search business for $20 billion leaving Yahoo to run its own e-mail, messaging, and content services. Jonathan Miller, ex-chairman and CEO of American Online, and Ross Levinsohn, a former president of Fox Interactive Media, would be proposed to lead a new management team at Yahoo.

However, just last week, Steve Ballmer, Microsoft CEO, re-affirmed with company shareholders that the company had no intention of resuming its pursuit of Yahoo who rejected Microsoft’s offer of $33 per share, or nearly $50 billion last summer.

Yahoo shares have dropped to less than $9 per share at worst, although the stock has rebounded above $11 recently after Carl Icahn, the Yahoo board member, bought nearly seven million more Yahoo shares.

It is said that Microsoft may be waiting for Yahoo to get another CEO in place, after Yahoo CEO Jerry Yang planned to step down recently, to consider re-opening negotiations with the company. “Ballmer was confused before about who the decision-makers were, and it’s a mistake he will not make again,” commented Jim Goldman, CNBC Tech Check.