Google has already planned to launch its paid music subscription services on YouTube.
Google is negotiating with major music companies to launch a paid subscription music streaming service to take on Spotify and Deezer.
The company's move marks its entry into the fast growing online music market.
The service would allow access a library of millions of songs, would compete against Amazon and Apple, which operate download stores though they are yet to foray into commercial music-streaming domain.
FT revealed that Google will follow the freemium business models used by well known streaming firms that allow free listening, while a premium subscription service for accessing-all-areas music.
The search engine major has already planned to launch its paid subscription services on YouTube.
In 2011, Google launched its music download store in the US and has expanded its services in five European countries.
Google's music service will compete with Apple's iTunes, and is expected to give Apple a run for its money by offering users the ability to match and upload a personal music collection for free.