After weeks of rumour and speculation MySpace Music could be about to go live within the next few days

Sources familiar with the venture have told Reuters that MySpace’s owners, News Corp, have agreed a deal with Sony BMG, Warner and Universal that will see the creation of a wide-ranging music service within the MySpace site.

Although three of the ‘big four’ music labels are involved, it’s not yet clear whether EMI will be on board.

Downloads, tickets and ringtones

According to the source the new service from MySpace will offer music streaming, MP3 downloads, concert tickets, ringtones and merchandise.

Although the major parties have been in talks for some time, one key obstacle to the deal has been a lawsuit Universal Music filed against MySpace in 2006, alleging copyright infringement.

Although the litigation process has yet to be resolved, one of Reuters' sources has claimed progress is being made, and that the suit could be settled in time for the announcement.