The digital music service Spotify is in ‘advanced talks’ to take over its rival SoundCloud, according to The Financial Times.

The Swedish firm, which has seen revenues of £1.5 billion, has come under increasing pressure from competing music providers such as Apple Music, Tidal and more recently, Amazon’s new music service.

However, the company could now be taking over German-based SoundCloud, valued to be worth $700 million (£535 million).

Spotify, who offers users music for free with advertisements or for a monthly free without them, already has 100 million users worldwide and 40 million subscribers making it a leader in the streaming market.

This is compared to Apple, who said its streaming service has reached 17 million users since it launched June 2015.

However, Spotify is yet to make a profit since launching in nearly eight years ago.

SoundCloud, which was launched in 2007, has acted as a platform for many popular artists such as PartyNextDoor and Bryson Tiller, however it has also failed to make a profit.

Earlier this year, the company launched a pay-for streaming service similar to its rivals and In June, social media giant Twitter invested $70 million after discussions that it might be buying the company.