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Nokia’s chief executive has given the strongest indication yet that his company is looking to make a move into the netbook market.

Olli-Pekka Kallavuo said at an event in New Delhi that his company was looking at the possibility of building moving beyond handsets and into larger systems.

“The PC and the mobile will continue to come closer and merge. A lot of opportunity can be seen in this converged area,” he was quoted as saying.

“We are looking at the netbook market to see what kind of opportunity is there.”

Kallavuo’s comments are the strongest evidence yet that Nokia was eying a netbook release. The company has been said to be looking at the possibility of entering the market since at least February.

The news adds Nokia to a growing list of firms which are reportedly making plans to release netbook devices.

Apple is rumoured to be in the late stages of developing one or more tablet-style devices, while Google has said that its Chrome OS would target the netbook operating system sector.

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This strategic alliance, according to the New York Times, will be announced later today.

The Nokia/Microsoft partnership will further spread the Redmond-based company’s software footprint for Office 2010, which is already competing with Google Docs by offering a free web-based version.

Last week’s purchase of the Office.com domain from Belgium-based firm, ContactOffice Group, could also be seen as another way to ensure web-minded people who may have chosen Google Docs out of sheer ease, may now consider Microsoft’s office in the cloud.

Previously Microsoft has announced that a native version of Office 2010 for Windows Mobile smartphones was on the cards as well as a mobile web-ready version that would display well on handsets like the iPhone.

While there are no details about this alleged deal, a suite of Microsoft offerings on Nokia’s Ovi Store would boost both brands in the mobile space.

The Nokia/Microsoft deal is expected to be announced later today after both companies said they were holding a conference call.

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