According to reports, Google Inc is preparing to launch a download store and song library.
This would allow Android mobile phone users to listen to music wherever they are.
Andy Rubin, who oversees development of Google’s Android mobile operating system, has apparently been having discussions with labels about what a Google music service would look like.
Reports have said that the service will be launched by Christmas of this year.
However, Google has not yet signed any licensing deals with major music labels, according to sources.
Comparisons are expected to be made with Apple’s iTunes Music Store, released in 2003, which currently accounts for 70% of US digital music sales.
This would be the latest Google product in competition with Apple, following recent announcements regarding Apple TV and Google TV.