As Yahoo shares fell to a new five-year low this week, a shareholder has proposed a new arrangement which could resurrect the Microsoft-Yahoo deal, according to reports.

Mithras Capital Partners, which owns less than one per cent of Yahoo, suggested selling the firm for $22 a share, a 74 per cent premium on its current stock valuation.

Under the terms of the proposed deal, Microsoft would unload Yahoo's Asian assets and non-search businesses, and end up paying $10.3bn for Yahoo's search business.

According to Reuters reports, Mithras partner Mark Nelson was due to send a letter outlining the proposal on Thursday night.

Microsoft walked away from a proposed acquisition of the web portal giant in May, after Yahoo priced itself out of the market and sought a search advertising tie-up with Google. That deal has since been delayed due to regulatory problems.