Nokia is making a re-entry to the mobile phone and tablet market.
Microsoft earlier announced that it will sell its feature phone business to HMD Global and Foxconn subsidiary FIH Mobile for $350 million.
Microsoft will now again focus on Windows 10 and support Lumia phones.
According to reports, Nokia has signed a strategic brand and intellectual property licensing agreement with Finland based firm HMD Global. Under the partnership, the company will develop Nokia-branded mobile phones and tablets for the next ten years.
The devices will come with Android OS.
HMD has been given branding rights and cellular standard essential patent licenses in return for royalty payments. Nokia will join the Board of Directors but not make any other investment or acquire equity in HMD Global. The deal is expected to close by end of 2016.
HMD Global plans to invest over $500 million over the next three years for marketing of the Nokia-branded devices.