The service will enable users to purchase and store music files online.
Google's video streaming service, YouTube is planning to launch a subscription based music streaming service in the late 2013.
The service is expected to enable the users to purchase and store the music files online, which can be accessed later from any other devices.
According to a report, the streaming service has a separate negotiating team, while it also claims that Google is involved in talks with record labels for the service.
YouTube told Fortune: "While we don't comment on rumour or speculation, there are some content creators that think they would benefit from a subscription revenue stream in addition to ads, so we're looking at that."
The service is expected to offer access to millions of music files on a monthly subscription and will include additional features like advertisement and free access to songs, according to the Fortune report.
Currently, YouTube does not charge users for its services but gets revenue from advertising in its music videos, a part of which is paid to record companies.