According to Reuters, Yahoo is working on its own desktop search tool.

"Yahoo is working on it. In short course, we'll have a desktop solution as well," Semel said at an investment conference in Scottsdale, Arizona which was broadcast over the Internet. He did not say specifically when Yahoo's desktop search program would be released.

Semel also said he plans to stay put at Yahoo. Semel, a former Hollywood studio executive, is seen by some as a strong potential successor to retiring Disney Chief Executive Michael Eisner.

"I enjoy being a builder. I love what I do at Yahoo. I'm looking forward to at least the next bunch of years, I hope many, of doing what I'm doing," Semel said.

In mid-October, Google released a test of its .