Google is all set to roll out an Apple iTunes rival in the form of new streaming service, dubbed Google Music, a report published by CNet claims.

According to CNet, the Web search company has reportedly started testing the much rumored Google Music service, and internally, suggesting that the much-anticipated music service, which is in the final stages before its launch.

The yet to be announced Google Music service was last mentioned at Mobile World Congress in Barcelona last month when Motorola Mobility chief Sanjay Jha said, “If you look at Google Mobile services [via Android] today, there's a video service, there's a music service – that is, there will be a music service.”

During the 2010 Google I/O conference, Google also indicated that people would be able to stream music on from an Internet-connected PC to an Android phone, and also would be able to buy music in the Android App Store and send it to the phone or other devices.

Google’s potential music service will let users to store their entire music files/libraries online for access from any Internet-connected device.

At present, digital music market is dominated by Apple iTunes, which accounted for about 66% of digital music sales as of December 2010.

Google has not responded to the concerned CNet report so far.