Purposed terms of the deal weren't shared, and it's not known why Spotify wants to buy SoundCloud.
Perhaps Spotify is interested in adding SoundCloud's social features to its already robust streaming service or wants access SoundCloud's wide array of indie and independent music.
A Spotify representative declined to comment on the report.
Spotify boasts 40 million paying subscribers, giving it a lead over Apple Music's 17 million users. The Berlin-based company has raised $1.5 billion in funding, which includes a $1 billion debt deal earlier this year. Rumors have pointed to Spotify eyeing a public offering in the future.