The chipmaker said that it would be renewing its deal with the Linux developer to create 'Moblin' mobile Linux netbooks and handsets.
Under the deal, the two companies are partnering to develop Linux-based netbooks that utilise Intel's Atom processor.
The partnership was first established in October of 2008.
Intel first launched the Moblin programme in 2007 as a way to increase adoption for its mobile processor line.
Last month the company handed control of the project over to the Linux Foundation.
In addition to extending the partnership, Novell announced plans to open a new development centre in Taiwan which will work in cooperation with Intel's own facilities on the island to develop Atom systems for OEMs.
"We are extending our involvement with Moblin because we believe that it provides a richer mobile Internet experience," said Novell president and chief executive Ron Hovsepian.
"The emergence of such mobile computing platforms as netbooks presents a significant growth opportunity."
"We believe that Moblin-based Novell software on Intel-based platforms will offer OEMs and ODMs exceptional solutions for delivering a full Internet experience on such devices."
Intel and Novell make mobile push
Intel and Novell have renewed their backing for Linux-based mobile devices.
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