Microsoft has announced a new search and ad deal with social networking site Facebook.

The pair already have an existing partnership but the new deal will see Microsoft search results and paid search advertising on Facebook's site.

"We're excited about using this as an opportunity to extend Live Search results," said Satya Nadella, senior vice president in Microsoft's search, portal and advertising platform group.

Microsoft owns a stake in Facebook and has an existing exclusive agreement with the site for banner advertisements.

See also: Facebook Connect gets first showing