Microsoft (NSDQ: MSFT) is trying hard to snatch away the search deal that Google (NSDQ: GOOG) has been working on with the second largest U.S. carrier Verizon Wireless (NYSE: VZ), and has offered a much sweeter rev share deal as part of it, reports WSJ, citing sources. MSFT saw an opening as Google was distracted trying to work and defend its search ad pact with Yahoo (NSDQ: YHOO), which was officially called off yesterday, the story says. Details of Google’s talks with VZW came out in August, and at that time the deal was supposed to be a comprehensive one: Google would have been the default search provider on Verizon devices and would give it a share of ad revenue. The search functionality would be on VZW’s homescreen. Later on, the deal could extend to Verizon’s Web portal and even its FiOS TV service.

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For now, Verizon is said to be leaning towards Microsoft, but a final decision hasn’t been made. Google certainly would be cagey to be too pushy, having gone through this close shave with the federal regulators. Also, it probably realizes that these closed ecosystems deals are only transitional in nature, and as I wrote before, as phones and networks open up, users will be able to use whichever search engine they desire, not the ones deemed official by the carriers.