Microsoft and Yahoo senior executives met on Monday this week and discussed about Microsoft's takeover for the internet giant according to published reports.

The meeting was the first one after Microsoft made a bit takeover bid worth $42 billion, on Jan.31, which was rejected by Yahoo in February.

Yahoo is apparently trying to keep all options open and the meeting was alleged to be one of the strategies for the internet firm to keep this on track.

Yahoo has had talks with various companies, in the past few weeks, including News Corp. and Time Warner's AOL.

After Yahoo's rejection of the takeover last month, no other bids have been made public and Microsoft has not made another takeover attempt leaving the two companies in a stalement.

Microsoft had proposed to pay $45 billion for Yahoo, but the value of its offer has since declined to less than $42 billion after its shares fell by 12 percent.

Microsoft shares were 2.1 percent or 61 cents down at $28.05 today on the Nasdaq, and Yahoo shares were down by 2.6 percent or 72 cents, at $26.78.

News Corp Chief Executive, Rupert Murdoch said he would not fight Microsoft for a Yahoo deal.