All Things Digital reports that a search deal between Microsoft and Yahoo may be nearing completion. Icahn, one of the earlier proponents of the deal, said he would favor the deal. Icahn owns 5 percent of Yahoo. He is also a director on the board.

“I’ve been a strong advocate of getting a search deal done with Microsoft,” Icahn told Reuters.

Microsoft tried to buy Yahoo for $47.5 billion in the spring of 2008. The offer was taken off the table when Yahoo’s board said the price was not high enough. Icahn later came in and tried to broker a deal between the two companies. He also tried to oust Jerry Yang and take over the company. He launched a proxy battle to take over Yahoo’s board.

If and when the deal takes place, Microsoft will likely take over Yahoo’s search advertising business.