Microsoft is finally close to edging out Google on a search deal, and this one is on the mobile side: Under the deal, it would become the default search provider on the Verizon (NYSE: VZ) Wireless’s phones, and is even offering guaranteed payments to the carrier of approximately $550 million to $650 million over five years, or roughly twice what Google (NSDQ: GOOG) offered, reports the WSJ, citing sources. These revenues would be against the ads that MSFT would be able to serve up in mobile searches. Verizon’s talks with Google are still on, but it is leaning towards MSFT because of better financial incentives.

This is similar to the Facebook deal MSFT did last year.

Separately, in an effort to combat the potential rise of Google-backed Android, MSFT is also trying to get Windows Mobile software in more Verizon devices, and could even end up paying VZW to encourage them to use the mobile OS. The combined value of the two deals could top $1 billion, the story says. VZW has been working with Windows Mobile for some time now, along with Palm and Brew, though it has also been cozying up to open source Linux, after recently becoming a member of the LiMo Foundation, the technology’s trade association.

• Microsoft Trying To Shiv the Potential Google-Verizon Wireless Search Deal
• VZW-Google: The Top Mobile Search Provider At 61 Percent : Report
• Verizon Wireless In Final Stages Of a Google Search Deal; Could Extend to Other