Nokia sold its mobile arm to Microsoft in 2013, but the Finnish company could be planning a return to the consumer smartphone market as soon as next year, according to a new report.

The current contract between Nokia and Microsoft means the company can't launch a mobile device with the Nokia brand, although that contract expires late in 2015.

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Nokia is not planning a full resurgence with factories and distribution. Instead, it will use a similar business model to its Nokia N1 tablet, launched in China a few months ago.

It will partner with another company, provide the design, patents and technical help, and in turn receive a cut of all the sales.

It's a smart move by Nokia to reduce risk in light of its operating loss it's been struggling with for over five years. Nokia is currently profitable with a large networking business. It recently acquired Alcatel-Lucent for $16.6 billion to push this division further.

Alcatel is already a smartphone brand sold in Europe, Asia and Latin America, meaning Nokia will have some ties to the smartphone industry before 2016. These phones will still go under the Onetouch brand established by Alcatel-Lucent before the acquisition.

Nokia Technologies, the division in charge of Nokia's 10,000 patents, will create the new smartphone schematics for a mobile provider to manufacture. Re/Code also claims Nokia Technologies is working on virtual reality, amongst other new technologies.

Even though the Nokia sale knocked a lot of interest from the Finnish people, it's clear the mobile division was a burden and now Nokia is back stronger than ever. It might be some time before we see them back in Europe, but with a tablet already selling in China and a smartphone coming soon, it's clear the name Nokia isn't dead.

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