The international partnership enables listeners to right click on tracks to download individual MP3s and soon whole playlists created within Spotify.
The move will push Spotify, which only began offering free registration last month, into closer competition with Apple's hugely successful iTunes.
It also marks the start of a bespoke download model that will bolster Spotify's fledging ad-supported, pay-per-play and monthly subscription models.
Spotify previously had retail partnerships with 7Digital, iTunes and Amazon, offering downloads on a small selection of its catalogue. By going it alone with 7Digital Spotify ultimately wants to allow consumers to listen and buy tracks securely with one or two clicks.
The partnership will start with UK and Germany, before rolling out to France, Italy and Spain.
Spotify and Last.fm are negotiating a landmark deal that will enable brands to buy advertising packages across both burgeoning music offerings.
The news of Spotify's expansion plans comes at a tough time for music download services. SpiralFron shut down earlier this month after borrowing millions from private investors, while Ruckus, a site aimed at students, closed in February.
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