According to a Sunday report in the online edition of the Wall Street Journal (WSJ), the location-based services startup Foursquare is apparently close to obtaining a new funding to meet its expansion needs. The funding deal, likely to be announced this week, will be led by Silicon Valley venture-capital firm Andreessen Horowitz.

However, since the terms of the reported funding deal have not been officially disclosed, there has been no specific revelation about either the exact amount that New York-based Foursquare will raise, or the valuation that the investors have placed on the company through the new funding.

The March 2009 launched Foursquare, which allows people to “check in” at bars, restaurants and other places using their smartphones, has already gained notable attention as a dominant player in the arena of the so-called location-based services to smartphone users.

Referring to the growing popularity of Foursquare, which also offers points and badges for discounts and prizes to users who “check in” frequently, the company’s CEO Dennis Crowley revealed that the website currently boasts around 1.7 million users.

According to a filing with the Securities and Exchange Commission, Foursquare raised a modest $1.35 million in a last September funding round led by Union Square Ventures, a New York venture-capital firm.

Meanwhile, calling Foursquare an ‘outstanding startup,’ Andreessen Horowitz spokeswoman Margit Wennmachers said: “We have a lot of respect for Dennis and his team.”