Microsoft may be edging towards a hostile takeover of Yahoo, according to reports in the Wall Street Journal.

The WSJ reports that sources familiar with the matter believe a decision on Microsoft's next step will be made today – and suggests that a hostile takeover is likely.

But the reports could yet be just the latest posturing in this long-running saga. Microsoft and Yahoo are thought to be edging closer in terms of valuation, and other sources quoted in the WSJ suggest Microsoft may raise its bid from $29.48 to $33 per share.

The deadline which Microsoft had given Yahoo to respond to its initial offer passed last weekend with the internet giant refusing to budge.

Earlier, Microsoft chief financial officer Chris Liddell had warned that the firm could pull its offer to buy Yahoo if the latter's board maintained its " unrealistic expectations" of a higher sale price.