Jay-Z, the rapper and music mogul, is close to signing one of the world’s biggest music contracts, an all-encompassing deal worth $150 million (£75 million) that includes concert tours, merchandising and music sales.

The ten-year deal is expected to be agreed with Live Nation, the concert promoter, and would mark yet another remarkable career move for a self-described “street hustler” who grew up in a Brooklyn housing project.

“I’ve turned into the Rolling Stones of hip-hop,” said Jay-Z, in an interview with the New York Times. “[It's possible] to reach the consumer in so many different ways right now. Everyone’s trying to figure it out.”

The deal provides more evidence that in a time of steeply declining sales, the traditional record contract is dead. Jay-Z’s agreement with Live Nation is expected to result in the founding of a start-up venture called Roc Nation, which will become an umbrella organisation for all of the rapper’s interests. Profits will be split.

As part of the deal, Jay-Z — whose best known hit is perhaps a 1999 remix of the song Hard Knock Life from the musical Annie — is likely to leave his current label, Def Jam, after delivering one more album.

Several other bands and artists, including U2 and Madonna, have already abandoned traditional deals for contracts with Live Nation, which is able to offer massive deals that include concert promotion and merchandise sales. Madonna’s deal was said to be worth $120 million over ten years.

Nevertheless, critics have called these contracts glorified retirement packages for fading artists and have questioned how Live Nation can ever turn a profit.

As well as being known for his music and business activities, Jay-Z has recently made headlines because of his romance with the singer Beyoncé Knowles. It was reported this week that the couple had taken out a 60-day wedding licence in Scarsdale Village, New York.

But Jay-Z still appears to be most focused on his music career. “In a way I want to operate like an indie band,” he said. “Play the music on tour instead of relying on radio. Hopefully we’ll get some hits out of there and radio will pick it up, but we won’t make it with that in mind.”

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