The word is that Apple is in negotiations with Microsoft with a view to replacing Google on the iPhone will Microsoft’s Bing according to two people familiar with the situation reports an article over on business week.

Apparently the sources state that Apple and Microsoft have been in talks for several weeks. Although Apple and Google have worked well in the past, perhaps Google leap into supplying smartphones such as the Nexus One has cause Apple to become concerned.

The Nexus One is a direct rival to the iPhone after all, and as usual neither Apple nor Microsoft is offering any comment on the rumour.

Although apparently if the iPhone swaps Google for Bing, the iPhone will still use Google services such as Google Maps, Gmail, GTalk and the like, so the iPhone won’t be completely dumping Google.