While News Corp. is still in the process of securing a new search advertising pact for its social networking website MySpace.com, sources ‘in the know’ have shared the information that the company’s search ad contract with Google has been extended by one month.

It is for the second time that MySpace’s contract with Google has been extended. The agreement, under which Google had agreed to pay $900 million for placing ads on MySpace over a three-year period, was initially supposed to end in June; but was already extended till the end of August.

Though there has been no disclosure about the identity of the contenders for a new MySpace agreement, sources familiar with the talks held in July had said that the Beverly Hills, California-based social networking site was in talks with Microsoft, Yahoo, and Google for replacing the contract.

The replacement of the contract is one of the key moves that MySpace President Mike Jones has been trying to work out; especially after new features have been introduced to revive the website, which was surpassed by Facebook, in terms of worldwide users, in April 2008.

Noting that MySpace was “actively engaged” in striking a new search ad contract, News Corp.’s Chief Operating Officer Chase Carey said in an August 4 statement that the new contract will essentially be a performance based one; and will likely be worth less than the expiring pact with Google.