Nokia is in talks with Microsoft over creating a new line of Windows Phone 7 devices according to recent reports.

Eldar Murtazin of Mobile-review.com states that during the past month, Nokia has begun talks with Microsoft to look at offering Windows Phone 7 devices. The talks were kick started by Nokia’s new management. Stephen Elop, ex-Microsoft employee, joined Nokia earlier this year as the company’s CEO. Speculation over Windows Phone Nokia devices has been rife since his departure from Microsoft to Nokia.

Mobile-review states that Nokia could be “creating an entire line of Windows Phone devices that may go under the name Nokia, through the sales channels for the company, and will also have the characteristic features of its products.”

Nokia has been struggling in the smartphone market after Apple’s iPhone and Google’s Android devices have dominated user spending. Any move to Windows Phone 7 would likely be seen as a positive one by analysts and end users. It remains to be seen whether the mock-up, below, will ever come true.