Yahoo! customers can search with partial lyrics on the Yahoo! Music search bar. There will be access to more than 100 music publishers including BMG, EMI, Sony and Universal in addition to independent publishers.
Gracenote is in talks about a similar deal with Apple that could see the iPod maker deliver song lyrics through its iTunes Store.
Song lyrics are consistently one of the most searched for items on the web whether it be to settle arguments or for pub quizzes, but there is no single reliable source currently available.
Ian Rogers, general manager of Yahoo! Music, said: "You mean Bob Dylan isn't actually saying 'The ants, my friend, are in a bowling pin?'. Finally, a free, legal and definitive way to settle a bet with the guy sitting next to you at the bar who is certain the Ramones' most famous anthem declares, 'I wanna piece of bacon.'"
Gracenote, formerly known as CD Data Base, lyrics will be integrated in three ways through a Yahoo! Music search, Yahoo! Music top songs and Yahoo! search where the internet search provider will be adding lyrics to its database and index meaning that any user can search and find lyrics from the search box.
Craig Palmer, president and chief executive officer of Gracenote, said: "Song lyrics are continually among the top 10 searches performed on major search engines, though the results often provide consumers a frustrating experience filled with inconsistent and incomplete lyrics, and annoying pop-ups.
"With Gracenote and Yahoo!, consumers will have access to the largest database of high quality lyrics linked directly to the rich album and artist content available throughout Yahoo! Music."
Gracenote delivers digital media devices and applications for entertainment sources. It powers services including Apple iTunes, Yahoo! Music Jukebox, AOL Winmap and mobile music applications.