Sony is reportedly mulling over offering a Windows-based handset in mid-2014.
The electronics giant has been making Android devices for years, but a potential partnership with Microsoft could change games for both the tech companies.
According to Cnet, if the deal between Sony and Microsoft actualizes, it would be the first time the company would get into the Windows Phone space.
Meanwhile, Microsoft has also been trying to rope in other device manufacturers to expand its PC-dominant software to the mobile phone platform and has also cut software-licensing fee to lure manufacturers.