Reuters is reporting that Apple has now completed work on its rumored online music storage and streaming service. Reuters also claim that Google is working on a similar service but its plans have stalled; Apple will beat it to the launch. The source of this new information is cited as “several people familiar with both companies’ plans”.

Apple's plans will allow iTunes customers to store their songs on a remote server, and then access them from wherever they have an Internet connection, said two of these people who asked not to be named as the talks are still confidential.

A few question still need to be answered. When will this service actually launch? Will it be part of iOS 5? Will we see it announced as part of a revamped MobileMe service? How much will it cost to access this online music locker. What storage capacity will be offered?  No doubt we will have to wait until Apple actually announces the service to find out the answers to these questions.

More importantly, do you think that this is this the future for iTunes? Are you excited by the prospect of an online music storage and streaming service from Apple? Let us know in the comments!

[Reuters]