The battle between rival search giants Yahoo and Google is moving into the mobile arena as both firm prepare to launch advanced wireless services, the Wall Street Journal reported today.

Yahoo has teamed up with SBC Communications to introduce a mobile phone integrated with an MP3 player and megapixel camera that will allow mobile users to link music, photos and email with their online accounts.

The Yahoo/SBC handset is manufactured by Nokia, and will available for purchase in the US early next year.

Starting on Monday, Google will provide services for mobile phone conversions of applications such as Google Maps. The service will only be available on mobile phones capable of running Java software.

The moves are predicted to further transform the role of traditional mobile phones, turning them into internet-connected pocket-sized computers that offer a multitude of functions beyond simple phone calls.

Nokia launched three new handsets last week which it describes as "multimedia computers" and not mobile phones.