An alleged Microsoft source claims that Nokia is developing phones that would be compatible with the Zune Marketplace.

While the project isn’t said to involve custom handset design, Nokia in the suggested plan would integrate its software with content from the Microsoft-run Zune store, which in protected format doesn’t currently work outside of Zune portable media players. Whether this would involve direct access to the Zune Marketplace from the phones themselves or sync with PC-based Zune software is unknown.

Nokia has regularly supported Microsoft formats and offers support both for Exchange data and protected Windows Media files but has so far never produced a Windows Mobile device, preferring the more open Symbian Series 40 and 60 operating systems for all of its devices in recent years.

Source:Electronista