Google Inc is preparing to unveil a new online music service, similar to a service recently launched by Amazon.com Inc, a move that escalates the battle to create the next generation of internet businesses for storing and listening to music, says a media report.

"Google is preparing as early as Tuesday to unveil a new online music service similar to a service recently launched by Amazon.com," The Wall Street Journal reported citing people familiar with the matter.

Internet search engine giant is likely to announce the service at its annual conference in San Francisco, the report said, adding that initially, the service is to operate in a testing mode, and not be available to the public at large.

The report said that Google, like Amazon, has not secured licences from the four major recorded-music companies and is likely to include a system that functions much like a remote hard drive.

Users of the service are expected to be able to listen to songs they have uploaded to the service in a 'streaming mode' but would not be able to download the files themselves, it added.

Earlier, Amazon had launched its music service that enables customers to securely store music on the company's web servers instead of local hard drives.

According to the publication, Google spokesperson did not comment.