Cisco Systems Inc is considering buying the world's top mobile handset maker Nokia in a bid to gain its wireless infrastructure technology, the Business newspaper reported on Sunday.

The paper, which did not reveal the source of its information, said USbased Cisco had traditionally concentrated on acquisitions of niche technology players, but its Chief Executive John Chambers is believed to be interested in merging with a wireless infrastructure company.

"Nokia has been identified as the most likely target," the paper said.

Cisco, the largest maker of Internet equipment, is worth around $123 billion, while Nokia's market value is around $71 billion.

The paper said Cisco's mainstay networking market was fast changing with the convergence of fixed-line and wireless networks, and Cisco needed a merger to acquire the technology to create intelligent wireless applications, which Finnish-based Nokia could provide.

Cisco was not immediately available for comment. A Nokia spokeswoman in Helsinki declined to comment.