Deal would bolster Yahoo’s mobile offering.
Yahoo is reportedly looking to acquire location based search app Foursquare for around $900m, in efforts to fortify its mobile offering.
Sources told TechCrunch that the "deal is done" and both the sides are working on the details.
The New York based start up by Dennis Crowley and Naveen Selvadurai launched the app in 2009 which provides local search services and recommendations to users.
Later in 2014, Foursquare added a social networking feature to the app allowing users to share their location with friends via the "check in".
As part of its efforts to strengthen its mobile offering, Yahoo has acquired several companies under the stewardship of CEO Marissa Mayer.
In 2013, the company acquired blogging and social networking site Tumblr for $1.1bn.
In 2014, Yahoo has acquired video advertising platform Brightroll for $640m, while other notable start up acquisitions include Stamped, Summly, Astrid, Jybe and OnTheAir.