Spotify, the digital music download service, is close to securing new funding from investors including the charitable foundation of Hong Kong tycoon Li Ka-shing.

Spotify, which is availbale in the UK and Sweden, has attracted two million users in less than a year. It is hoping new investment will allow it to expand in the US and Europe.

The service allows customers to listen to music for free with adverts or allows a £9.99 ad-free subscription.

It is hoping to become a real threat to Apple’s iTunes and is waiting to see if Apple allows it to offer an application for iPhones.