Finnish communications and information technology company Nokia, which sold its smartphone business to Microsoft for $7.2 billion last year, has denied reports that it was resuming its smartphone manufacturing activities. The denial was posted on the official website of the company on Sunday.

IB Times reports that the statement issued by the Finland-based company read, "Nokia reiterates it currently has no plans to manufacture or sell consumer handsets." In fact, rumors appeared last week suggesting a probable joint venture between Nokia and Taiwan-based Foxconn on licensing phone designs.

As per the agreement between Nokia and Microsoft, the Finnish company will not be able to re-enter the mobile phone business before 2016. However, the company is free to return to the market via brand-licensing.

It may be mentioned here that in November 2014, Nokia launched the N1 tablet, which is manufactured by Foxconn. Following its debut, Nokia product head Sebastian Nystrom had said that the company was considering more devices. At that time, Nystrom told Reuters, "With the agreement with Microsoft, as is customary, we have this transition and we can't do smartphones," adding, "We have a time limit. In 2016 we can again enter that business."

Notwithstanding this, Nokia has not remained quiet. Earlier in April 2015, the company acquired Alcatel-Lucent, a France-based network equipment maker, for $15.6 billion, and is said to be preparing to sell its mapping and location business called HERE. The possible buyers include Alibaba, Apple, Amazon, Facebook and Uber.

Meanwhile, Christian Today reports that Nokia's road to success in the smartphone industry will not be an easy one since it will have to square off against the tech giants like Apple and Samsung.

As of now, Nokia has not revealed details on what kind of device it is going to release in 2016. As the Nokia will not be receiving licensing rights from Microsoft to assimilate the software giant's Windows Mobile in the firm's handsets, the Finnish company will have no choice but to settle for Google's Android Lollipop platform.