The search engine currently on Microsoft's Web site uses technology owned by Yahoo!. MSN has repeatedly said it plans to develop its own search technology, which would allow it to compete head-on with Google Inc.
MSN also plans to launch a desktop search engine, similar to the one put out by Google last month. MSN does not immediately intend to integrate its new Web search engine with its desktop search, according to a source familiar with the product.
Ross Fadner contributed to this story.