The world’s largest maker of network equipment, Cisco Systems, is looking forward to buy a maker of “wireless infrastructure” and Nokia, who is the world’s largest maker of mobile phones, is the most likely target, according to the Sunday Business newspaper cited by Reuters news-agency.

Cisco has been historically concentrating on acquisitions of niche technology players and it is believed that the company is now interested in merging with a “wireless infrastructure company”. The news-paper claimed that the world’s largest maker of handsets Nokia has been “identified as the most likely target”.

The paper said Cisco’s mainstay networking market was rapidly transforming with the convergence of fixed-line and wireless networks, and Cisco required a merger to acquire the technology to create intelligent wireless applications, which Finnish-based Nokia could provide. Nevertheless, it is unclear, which benefits, apart from access to technology expertise of Cisco, Nokia would get if it merges with Cisco.

Nokia’s current chief Jorma Ollila, who transformed the once rubber boots maker into the world’s largest manufacturer of cell phones,  said in early August that he would resign in 2006. It is expected that he would be succeeded by Olli-Pekka Kallasvuo, who is currently Executive Vice President and General Manager of mobile phones division as well as Chief Financial Officer of the company.

Apart from cell phones, Nokia also makes variety of multimedia, consumer, enterprise and networking devices.

Market capitalization of Cisco Systems is currently $123 billion, whereas Nokia’s market value is $71 billion. Currently Cisco has about $5.04 billion in cash, according to EDGAR Online.

Representatives for both Cisco and Nokia reportedly declined to comment on the report.