Finnish mobile maker Nokia has yet again been linked with an expansion of its agreement with Microsoft to launch a new 10-inch Windows 8 tablet in the fourth quarter of 2012, Digitimes reports.

Nokia, which is pushing ahead with its new range of Windows Phone smartphones, is said to become another of Microsoft’s Windows on ARM partners, delivering a dual-core Qualcomm-powered 10-inch Windows 8 tablet before the turn of the year.

The technology-focused industry publication also reports that Nokia will build upon its manufacturing contacts in Asia, outsourcing production to Compal Electronics. The first allocation of tablets is expected to total more than 200,000 units.

In its annual filing to the SEC in the US last week, Nokia identified how the tablets had helped its rivals extend their brands and increase competition. Nokia CEO Stephen Elop also identified that the company is “studying the markets closely” after one of its regional offices let slip that tablets may be introduced as early June 2012.

Microsoft recently launched Windows 8 Consumer Preview at an event at Mobile World Congress at Barcelona. On-stage demos included prototype devices from Fujitsu and Samsung, but a partnership with Nokia was not disclosed at the time.

Backing from Nokia would assist Microsoft in its attempt to claw back tablet market share from Apple and provide competition to Google’s open-source Android platform.