Microsoft Corp, capitalizing on Google Inc's regulatory snarl, is working to steal a deal with Verizon Wireless away from its rival, the Wall Street Journal said.  

Microsoft has got the mobile carrier's attention by offering a sweeter deal to put its search service and related advertising on Verizon phones, the paper said.

Microsoft is also offering more generous revenue sharing and a guarantee of substantially higher payments to Verizon, the paper said, citing people familiar with the matter.

Google has been in discussions for months with Verizon to make its search engine the default on most Verizon phones, the paper said, citing the people.

Verizon Wireless, a joint venture between Verizon Communications Inc and Vodafone Group Plc, is considering both companies' offers and hasn't made a final decision, though it is leaning toward Microsoft, the people told the paper.

Microsoft has found an opening recently partly because Google has been busy dealing with the U.S. Department of Justice's review of its Yahoo Inc partnership, the paper said citing, people familiar with the matter.

Google this week pulled out of a search advertising partnership with Yahoo due to regulatory objections.

Microsoft has aggressively sought to woo Google partners with favorable financial terms, the paper said citing people familiar with Microsoft's efforts.

Microsoft, Google and Verizon could not be immediately reached for comment.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Erica Billingham)