Microsoftis next move to take over Yahoo may come as early as Wednesday. The Redmond-based company has remained silent about its plans, but a source close to the company claimed that a proxy takeover is one of the options under consideration, according to the Wall Street Journal.

Apparently Microsoft has put together a list of 10 nominees and three alternatives to replace Yahoois current board of directors and could attempt to take over the Internet search companyis board at the next shareholder meeting this summer.

Microsoft presented Yahoo with an unsolicited US$44.6 billion takeover bid in February to try to better compete with Google for online search advertising dollars. Yahoo rejected the offer after claiming it undervalued its market value.

Microsoft later gave Yahoo an ultimatum with a deadline of April 26 to close a by out deal or potentially face a hostile takeover attempt. Yahoo let Saturday pass without reaching an agreement with Microsoft, and both companies have been quiet about the proposed buy out ever since.

Currently, Google is the dominant player in that advertising market, and Yahoo is the runner up. So far, Microsoft has not been able to make a dent in Googleis market lead.

Microsoft and Yahoo are not commenting on the status of the buyout offer.