Verizon Communications and AT&T are set to make to the final round of bidding in the auction for Yahoo's core internet assets, Reuters reports. After holding a board meeting to review second-round offers, Yahoo will start reaching out to bidders to notify them whether they will make it to the next round, the treports claims, citing people familiar with the matter.

Verizon's latest offer was reportedly at the low end of the $3.5 billion to $5 billion range of the second-round bids that came in last weekd.

Yahoo hopes to conclude the auction by next month. The company started exploring a sale of the assets after coming under pressure from activist hedge fund Starboard Value LP.

A consortium led by Quicken Loans Inc founder Dan Gilbert, and backed by Berkshire Hathaway Chairman Warren Buffett, is also expected to make it through to the final round.

Yahoo, Verizon and AT&T declined to comment.

Verizon is primarily interested in Yahoo's advertising technology tools. But other assets up for sale, such as search, mail and messenger services, could be combined with the corresponding businesses of AOL, which it acquired last year for $4.4 billion.

AT&T has been seeking to catch up with Verizon in advertising technology as it seeks to expand in mobile video offerings.

In December, Yahoo scrapped plans to spin off its Alibaba stake, after investors fretted over whether that transaction could have been carried out on a tax-free basis.