Online music streaming service Pandora is set to clinch deals with major music labels and publishers to help it launch a Spotify-like on-demand streaming music service later this year.

The deals should also pave the way for an overseas expansion of both Pandora’s current free online music service and a US$10 per month on-demand service.

While the deals are not done, news indications are that the launch could happen as early as next month, according to the Wall Street Journal. An estimated 4 million users currently pay to subscribe to Pandora One.