Microsoft is buying Nokia's mobile phone production unit for EUR 5.4 billion ($7.2 billion), BBC Russian reported.
As part of the deal, Nokia will license its patents and mapping services to Microsoft.
Completion of the transaction is expected early next year.
"It's a bold step into the future – a win-win for employees, shareholders and consumers of both companies," Microsoft CEO Steven Ballmer told reporters.
The transaction has yet to be approved by the competent regulation authorities as well as Nokia shareholders.
Nokia is a producer of mobile devices. Besides, the company provides comprehensive digital map information through NAVTEQ, and equipment, solutions and services for communications networks through Nokia Siemens Networks.
Microsoft is one of the largest international developers of software products for PCs, gaming consoles, PDAs, and mobile phones. The company has developed Microsoft Windows, the most widespread line of operating systems in the world.