Swedish music service Spotify is teaming up with Chinese media conglomerate Tom Group.

Spotify, the digital music service widely tipped as a contestant to the dominance of Apple’s music store iTunes, is teaming up with with Chinese media conglomerate Tom Group in a move to launch the music service in the country, Reuters report.

Tom Group has internet services such as eBay and Skype among its partners in China.

The tie-up will create a localised version of the software.

"Tom will work towards unveiling a localised version of Spotify in Greater China in the near future," a statement said.

China is the world's largest Internet market with 338 million users, Reuters reports, referring to government data.

Spotify is also planning a US roll out, potentially backed up with $50 millions from a group of high-profile investors including Hong Kong billionaire Li Ka-shing's charitable foundation. Tom Group is majority owned by Li.

According to record label executives, Spotify - launched last year – has already become more important than Apple’s music store iTunes.