US government lawyers close to the landmark antitrust lawsuit against Microsoft are examining a range of radical options, including whether to seek to split the software giant in two, if they win their case in court.

Attorneys for both the US justice department and 19 states have held extensive discussions over the summer to develop a legal "remedy" as part of an ongoing internal debate over how to limit Microsoft's market power.

A break-up of Microsoft would be highly controversial.

Judge Thomas Jackson is expected to make his first ruling in the lawsuit in a month, in his "findings of fact". This is expected to address the central question of whether Microsoft is in fact a monopoly. A final ruling is not expected until next year.