The Web portal Yahoo Inc. is in early discussions with the major record companies for music online a service of the Associated Press reported.

The report by late Wednesday, quoting two unspecified Label executives, and said details are still being negotiated and Yahoo could offer as MP3 files, either for sale or free of charge as part of a service ad-supported.

Online retailer Amazon.com Inc. has MP3 service last year, a command in competition with Apple’s Online Inc. iTunes Music Store.

Amazon has teamed up with the record companies EMI, Sony BMG Music Entertainment, Vivendi’s Universal Music Group and Warner Music Group Corp.