MICROSOFT has struck deals with record companies including Universal and SonyBMG that will provide it with as many as one million songs to sell from its long-awaited online music store.

The world’s largest software company has negotiated with each of the four big music companies, which also include EMI and Warner Music Group, for access to their vast libraries of digital music as it prepares to compete with existing online music stores such as Apple’s iTunes, Napster and Sony Connect.

The new service, which is being developed by MSN, Microsoft’s internet business, is expected to be launched in the US in early September. It should be fully operational by the end of the year.

Microsoft is eager to ensure that its music store will open with as large a selection of music as its key competitors. Apple announced this month that iTunes had more than 1 million tracks available, while Napster has about 750,000.

The latest deals are likely to rankle with Apple, which originally sought to muscle out its competitors by seeking exclusive deals with record companies.

“MSN is working very closely with the music industry to build a top-quality music service for consumers, which includes providing a wide selection of music and an easy-to-use service,” a company spokewoman said.

Microsoft is seeking to wield greater influence in the media market through products such as Windows Media Audio and Windows Media Player.

The plan is part of its blueprint to diversify beyond the PC and into home and portable entertainment.

Although the company is a latecomer to the online music market, its imminent arrival is likely to cause a major stir in the industry.

“It will be a fantastic development for the industry because, although Apple has done great work, and deserves to be applauded, it is and always will be a niche player and music downloads need someone like Microsoft to come along and take them to a wider audience,” one record company executive said.

One person familiar with the developments said: “Microsoft has a working platform, and they will be using essentially the same model as iTunes.”

A key difference, however, will be that the store is expected to offer the ability for customers to chat with one another.

The new store will be boosted by MSN’s status as one of the most popular internet destinations in the world, with more than 300 million people visiting its various sites each month.

The store will also have the advantage of a widening range of compatible digital music players, with manufacturers such as Samsung and Philips planning to release several new devices within the next few months.