Microsoft and America Online are attempting to thrash out a deal that could see AOL's internet service become a default feature of Windows.
Microsoft has confirmed that talks reconvened yesterday with the aim of resurrecting a contractual arrangement that expired on January 1.
A partnership could see AOL obtain a place on the Windows desktop, in exchange for an AOL undertaking to adopt the Internet Explorer browser.
"We are back at the table, and we are pleased to be back at the table," says Microsoft spokesman Jim Cullinan. But he warns that "the parties remain far apart".
He says Microsoft had agreed to provide AOL with technical information needed to make their software compatible.
A source close to the talks has said several new options have been discussed, including a plan to change AOL's system so that it supports both Microsoft's Windows Media Player format and RealNetworks' RealPlayer format.
Currently, AOL's software supports technology from RealNetworks, Microsoft's rival in the digital media field.
The latest version of Microsoft's ubiquitous operating system - dubbed Windows XP - is scheduled to launch in October.