Citing people familiar with Google's plans, The Wall Street Journal on Tuesday reported the company has already lined up deals with Universal Music Group, Sony Music Entertainment and Warner Music Group for the rumored service.
Google is expected to announce the initiative at this year's Google I/O, which is set to kick off on Wednesday, as the company has previously used the conference to unveil similar projects like the Nexus Q media streaming device.
The Internet titan already offers songs through the Google Play store for Android, but the media service is much like iTunes in that tracks and albums are sold on a per unit basis. Sources claim the as yet unannounced streaming service will use a subscription model, granting users access to a large library of music.
Pricing and the presence of ads in the purported service remains unknown.
Apple is also widely rumored to be planning an entrance into the streaming music industry with its so-called "iRadio" service, which is also reported to be based on the for-pay subscription model.
The Cupertino, Calif., company is also thought to be courting the "big three" labels, but low-ball royalty offers are said to holding up the process. Most recently reports claimed talks were once again stalled as Apple and Sony couldn't come to an agreement on licensing terms.
Rumors regarding iRadio have been circulating for months, but there has yet to be any concrete evidence pointing to an imminent rollout.