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Nokia is looking for new revenue sources as the mobile phone industry matures, and the acquisition of Navteq would give it a stronghold in the navigation industry.

Navteq has a market value of $7.6 billion and would represent one of Nokia's largest takeovers.

The two firms have been deep in talks for a number of weeks, according to the Wall Street Journal,

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though it is still possible the talks could crumble over last-minute issues. That could leave the door open to Google and Microsoft, which have also been touted in the media as potential buyers of Navteq.

"In the longer perspective it is good for Nokia, but it could dent the shares in the near term," says eQ analyst Jari Honko.

"Buying Navteq would be in line with Nokia's plans. Navteq's position is pretty strong," adds OKO Bank analyst Hannu Rauhala. "Navigation markets are just starting up."

Navigation is one of the fastest growing segments in the technology industry and many market followers see still huge untapped potential in the market.

Nokia declined to comment, and Navteq was not immediately available.

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