Reuters reports: “Google Inc is in active talks with number-two U.S. mobile carrier Verizon Wireless about putting Google applications on phones it offers, people familiar with the matter told Reuters on Tuesday.”

“So far talks between the Web search leader and Verizon Wireless, owned by Verizon Communications and Vodafone Group Plc, revolve around technology and potential business models such as advertising-sponsored services, one of the people said.”

“France Telecom on Tuesday denied its mobile business, Orange, was in talks with Google to introduce handsets running its software after it was named as a potential partner in a Wall Street Journal story earlier on Tuesday.”

“The Journal reported that Google was expected in two weeks to announce advanced software and services, enabling handset makers to sell Google-powered phones by mid-2008, citing people familiar with the matter. Google declined to comment.”

“According to the Journal, the Google-powered phones are expected to meld several of its applications, including Google Maps, YouTube and Gmail.”