It looks like MySpace’s dealings with Google aren’t over – or conclusively continued – just yet.  Even though a search and advertising deal is set to expire today, a report’s indicated that the companies’ existing contract has been extended a short time while negotiations continue.

Sarah Rabil and Andy Fixmer wrote earlier this morning, "MySpace.com extended a search advertising contract with Google Inc. by one month as the News Corp.-owned social-networking website tries to secure a new agreement, according to two people with knowledge of the talks."

That may be a sign things are going well between the two organizations; it’s a little hard to imagine Google being so cooperative if Bing or Yahoo seemed to be MySpace’s first choice.

Or perhaps Google’s just trying to stay friendly with MySpace as it prepares its own social offering – the better to attract users and/or gang up on Facebook.

Regardless, Rabil and Fixmer noted, "News Corp. Chief Operating Officer Chase Carey said on Aug. 4 that MySpace was ‘actively engaged’ in reaching a new search ad deal, which will likely be worth less than the expiring Google contract.  The new agreement will be performance based, Carey said."

It should be interesting to see if something gets hammered out before the end of September.