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YouTube chief executive Susan Wojcicki said that the site is working on a paid-for service, and is 'optimistic that [users] will see it soon'

After a year of speculation, YouTube has given its biggest confirmation to date that it is about to launch a subscription music service.

Speaking in California, YouTube chief executive Susan Wojcicki said that the firm is working on a paid-for service, and is 'optimistic that [users] will see it soon.'

It is expected to rival Spotify by offering ad-free, and offline access to millions of videos.

But Ms Wojcicki declined to say exactly when the service would launch while addressing the audience at Recode's Code/Mobile conference in California.

Prices have not been announced either.

Speculation about YouTube's Spotify rival began last year when 'two people familiar with the matter' announced its arrival was imminent.

It is expected to allow playback of videos without adverts, and let people watch videos offline on mobile devices.

This would match the options offered by Spotify on its own paid-for subscriptions, but with the added bonus of videos.

Reports claim YouTube has already reached deals with all three major music labels - Universal Music Group, Sony Music Entertainment, and Warner Music Group - and many independent labels, representing about 95 per cent of all labels. 

But the sources added that a small number of independent artists who had not agreed to new deal terms will have their videos blocked in some countries starting in a few days, even on the free version of YouTube. 

YouTube is rumoured to be looking at ways to block the music videos so users of the test version won't be confused about which content they can access for free and with features require payment. 

The move also adds pressure on those labels to sign, because not being on YouTube altogether will result in less advertising revenue and exposure.

Speculation about YouTube's Spotify rival began last year. It is expected to allow playback of videos with adverts, and let people watch videos offline on mobile devices. This would match the options offered by Spotify on its own paid-for subscriptions, but with the added bonus of videos, for example

It will not be the first time YouTube has experimented with paid-for plans.

In May last year, the Google-owned video giant launched a paid-for subscription service that charged users from 79p (99 cents) a month to watch videos on specialist channels, such as Comedy.TV and PGA Digital Golf.

Individual channels charge more for a subscription if they choose to, and the majority of UK subscriptions charge £1.49 ($2.50) a month.

Over 50 channels were launched as subscription-only, but not all paid-for channels can be subscribed to in the UK - namely Jim Henson Family TV, and National Geographic Kids.

The revenue split between YouTube and the channel producers and musicians is expected to be similar to the 45-55 split that YouTube currently has with advertising revenue.

At a media conference last year, YouTube's CEO Salar Kamangar said that a subscription model would give networks and producers a more direct line to their audience with lower costs.

A Google spokesman added: 'We have long maintained that different content requires different types of payment models.

'There are a lot of our content creators that think they would benefit from subscriptions, so we're looking at that.' 

It will not be the first time YouTube has experimented with paid-for plans. In May last year, the Google-owned video giant launched a paid-for subscription service that charged users from 79p a month to watch videos on specialist channels, such as Comedy.TV and PGA Digital Golf