Nokia will receive over $1 billion (£600m) from Microsoft in order to make handsets running the Windows Phone 7 operating system, according to reports.
The five year contract, which has yet to be signed according to Bloomberg, will see Microsoft stump-up a portion of the cash immediately to help the ailing Finnish manufacturer get started with the project.
In turn, Nokia will pay Microsoft a software license fee for each copy of Windows it uses in its handsets, which it will account for by slashing its own research and development budget.
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The license payments will allow the US-based tech Goliath to make a profit on the deal, said to the report.
The whopping payment may well have been the much-discussed sweetener that prevented Nokia signing-on as a partner with Android and going with WP7 instead.
Other observers are suggesting that the Finns felt they would have a much better chance to stand out in the crowd, as WP7 has far less handsets on the market than the Android platform.
Whatever the true reason, Nokia has been thrown a lifeline with the Microsoft tie-in and we're about to find out whether the company can get its head above water and pull itself to shore.