This new homepage will make it more easy for the Internet users to search and will also create new advertising opportunities, a media report said.
The new Yahoo homepage will include Yahoo's collection of online content and products with popular social networking services like Facebook, Twitter and MySpace.
The biggest change in the new design is a left-hand menu users can customize with links to dozens of potential third-party software, such as Facebook, micro-blogging service Twitter and Google Inc.'s Gmail.
"It's a sea change in the way we think about products, the way we think about users, and the way we think about our business," Yahoo Senior Vice President of Integrated Consumer Experience Tapan Bhat said in a conference call with reporters ahead of the announcement.
The media reports also said, "Yahoo will pre-populate the menu with some applications and recommend other ones users should add based on their browsing behavior; news and headlines still run down the middle of the site, which has a slightly cleaner look than the current homepage."