Microsoft Corp., the largest maker of software in the world, and Nokia Corp., the world’s largest manufacturer of cell phones, are reportedly teaming up to include Zune functionality into certain handsets by Nokia in an attempt to compete against Apple’s iPhone.

Citing “a well placed source within Microsoft”, Zunescene web-site reported that Nokia is currently working with the Zune team on integration of Zune Marketplace content delivery system into certain handset or handsets. If the information is correct, owners of Nokia phones will be able to get content both from Nokia and Microsoft, which means broader range of accessible music tracks, videos, etc.

There is no secret that Microsoft also plans to integrate certain Zune functionality into its Windows Mobile platform, hence, the deal with Nokia does not seem to be exclusive and it is highly likely that Zune Marketplace will be available on phones and smartphones by other makers as well.

There is no information whether Microsoft and Nokia are working together on an actual Zune handset.

Apple iPhone appears to be pretty popular among gadget fans around the world thanks to its stylish outlook as well as easy-to-use interface. Many companies would like to stop Apple’s expansion on the market of mobile devices, therefore, possible teaming up of Microsoft and Nokia is not a surprise. It is unclear, though, whether content delivery systems alone can compete against the iPhone.

Microsoft and Nokia did not comment on the news-story.