Google is considering partnering with Spotify to power Google Music. The search giant has told the labels that it has begun discussions with Spotify in recent weeks, though no agreement is in place, according to a source with knowledge of the talks cited by CNET.

This falls in line with previous whispers that Apple would beat Google to a cloud-based music service and that Google Music may be further delayed because talks with labels were going backwards. Information from last week suggested that Google had recently changed its terms, holding up negotiations.

Apparently, Google is considering Spotify because the search giant has been unable to reach agreements with the four top record labels on licensing a cloud music service. Google had originally hoped to launch a new music service by the end of 2010, and then was aiming for March 2011, but now it's indefinite on when it might debut. Unsurprisingly, both Google and Spotify declined to comment.

Spotify teaming up with Google would be great, as the former already has 1 million subscribers. The problem is that the European music service, which is working hard to make its way stateside, also doesn't have all the US labels on board.

Two months ago, Spotify reportedly struck a deal with EMI Music and three months ago, the company signed a deal with Sony Music Entertainment. Spotify thus has two of the four major music labels; the other two are Universal Music Group, the world's biggest label, and Warner Music Group.

All this news is still technically conjecture and speculation based on sources close to the company and the music industry. Google has still not announced its music initiative publicly, though many expect it to show off at least a sneak peek next month at its Google I/O 2011 conference, which is taking place on May 10, 2011 and May 11, 2011.