"'We’re pleased to announce that we have negotiated a significant and mutually beneficial revenue agreement with Google. This new agreement extends our long term search relationship with Google for at least three additional years.'

“'Under this multi-year agreement, Google Search will continue to be the default search provider for hundreds of millions of Firefox users around the world,' said Gary Kovacs, CEO, Mozilla."

The report by Kara Swisher suggests Google will pay $300m per year to Mozilla. That's a big increase on the last contract. And Google beat Yahoo and Microsoft to it. There's still life and rivalry in web search

"Mozilla today said that income from its search partners, including rival browser maker Google, increased by 19% last year.

"Royalties, almost all of which come from search services like Google, Microsoft, Yahoo and others, were $121.1m, up 19.3% from 2009's $101.5m.

"The vast bulk of the Mozilla Foundation's revenues came from search providers, which paid the organization for leading Firefox users to their websites. In 2010, royalty payments accounted for 98% of the year's revenues, a percentage point higher than the share of Mozilla's income attributed to search in the two years before."

Contract with Google runs out in November. What are the chances of a tough renegotiation? Or will Steve Ballmer turn on the charm and get Bing adopted?