Spotify has vehemently denied that it is up for sale, dismissing reports that it was recently discussing a possible acquisition by Apple.

Originally launched back in early 2008, rumours that Spotify was looking to be acquired by tech giants such as Google or Apple have been swirling around the internet in recent weeks.

'We are in it for the long haul'

A Spotify spokesman told TechRadar this week: "We're working hard to build the best music service we can and are in this for the long haul.

"We wouldn't normally comment on this kind of speculation, but we want to make it clear that we have absolutely no intention of selling Spotify."

As Spotify develops its social networking aspects and features, allowing users to share their favourite old and new tunes in ever-easier ways, the service is also claiming to be moving closer to signing a number of vitally important deals with major US record labels.

What the labels want

"If there is one thing the major labels want above all else in the digital music market it is competition," adds Paul Brindley, CEO of Music Ally Ltd

"So while the labels as shareholders would benefit from a short term windfall from a Spotify purchase, the long term prospects of Apple buying the company would seem to be far less attractive as this would concentrate the market even more in one player's hands.

"Equally while Apple may be seriously concerned about a possible Spotify US launch and undoubtedly has deep enough pockets to be able to afford such a purchase, even they may well likely baulk at the likely price tag which Spotify would seek at a time when its value is still being seriously hyped."

Spotify has, according to unnamed US music industry sources, never been closer to finalising deals with US major record labels than now.

Spotify is reportedly offering US labels big money advances, the sources added.