Google Inc. is preparing to roll out a music download service tied to its search engine later this year, followed by an online subscription service in 2011, according to people familiar with the Internet giant's discussions with the music industry.

Google's proposals are still vague, say these people, and it's unclear whether it has struck any deals with record labels so far. But Google has been stepping up conversations about offering new music services tied to phones running its Android operating system along with the broader...