Napster, which was closed last year after a long-running fight, will be brought back by its new owner, software company Roxio.
The service, which will be known as Napster 2.0, will allow users access to up to 500,000 tracks any way they choose: by paying for individual downloads, by monthly subscription, via internet radio or in any combination.
Napster has extensive content agreements with the five major record labels, as well as the top independents. The service will deliver access to one of the largest music catalogues, featuring artists from Eminem and Miles Davis to The Dixie Chicks and Bob Marley.
Chris Gorog, chairman and chief executive of Roxio, said: "Napster 2.0 is being built from the ground up to reflect the essence of independence and innovation that the brand is known for. Napster 2.0 will allow music fans to do both, putting the power where it belongs -- in the hands of consumers."
He added: "We are pleased by consumers' continuing interest in the Napster brand, as evidenced by the very significant traffic we are receiving to our placeholder site at napster.com, which allows consumers to sign up for updates on our progress and enjoy some creative teasers prior to the availability of the service."
Despite its absence, Napster remains the world's most recognised brand in terms of online music and its return could see it propelled to new success as the legal market takes off.
The legitimate market has received a boost from the launch of services such as Apple Computer's iTunes.com, which offers downloads of songs for $0.99.
Napster faced liquidation last year after a US court blocked the sale of the online music service to German media giant Bertelsmann. Bertelsmann had agreed to pay £20m for the song-swapping music service, which developed online software allowing people to swap copyrighted songs for free.
Bertelsmann hoped to relaunch Napster as a legal service, but its music industry peers were unwilling to strike licensing agreements with the song-swapping service, which was forced into liquidation by US courts in September 2002. Roxio bought the firm shortly afterwards.
The US record industry fought a lengthy legal case against the website, whose free swapping of copyrighted songs was deemed illegal. Record companies were seeking damages of $100,000 (£61,400) for each work infringed. Napster offered $1bn (£614m) to settle the case, based on the potential earnings of a future subscription-based service -- an offer that was rejected by the American music industry.
While Napster has gone, file swapping will live on following the rise of a number of imitators, including Kazaa and Morpheus, and it remains as big a problem as ever for the music industry.
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