Gains free hand from Microsoft deal in 2016.
Nokia could be planning a return to the mobile market once its agreement with Microsoft ends.
Two sources "briefed on Nokia’s plans" told Re/code that the company aims to reenter the market as early as 2016.
The report also claimed that Nokia plans several new products, including some in the virtual reality arena.
Microsoft acquired Nokia’s phone business in 2014, taking over Nokia’s Devices and Services business, including Smart Devices and Mobile Devices. This saw the American technology giant gaining the rights to the Lumia, Asha and X series brands.
The contract prevents Nokia from selling any phones under the Nokia brand throughout 2015.
"As Microsoft and Nokia Devices and Services come together as an expanded family, we will unify our passion, dedication and commitment to bringing you the best of what our joint technologies have to offer," commented Stephen Elop, former Nokia CEO and now Executive Vice President of Microsoft’s Devices & Services business unit, in a contemporary blog post.
"Together, we can connect and empower people with one experience for everything in their life in a world where it is mobile first and cloud first."
Nokia was in the news earlier this month after acquiring Alcatel-Lucent, signalling a move to expand its networking business.