When these companies announced in the month of July that the Bing search engine of Microsoft would be powering the search results of Yahoo, they said that they have planned for finalizing this deal by Oct. 27 or can use an arbitration panel in order to hammer out the differences.

In one filing with U.S. Securities and Exchange Commission, Yahoo has said that the companies agreed to extend the time period to negotiate and to execute this deal.

Yahoo said in the filing that the there remains some details that are to be finalized, as given the complex nature of transaction and said that both the parties are working on finalizing this agreement, both have made a good progress till now, and have agreed for executing this agreements as fast as possible.

This filing does not provide any new deadline for the finalization of the agreement. In one joint statement, Microsoft has said that it was committed to this agreement and that both the companies have mutually agreed for extending the deadline. It further said that they plan to do it as expeditiously as possible. Both the companies are optimistic for being able to close out this deal in the early 2010.