The launch is likely to be announced at a conference in August, Xinhua reported citing US media.
Technology blog GigaOM said users will find a new tab called Music in the left-hand column on their pages, right where Facebook lists Photos, Friends, Deals etc., and clicking on the new tab will open a page called Music Dashboard.
The dashboard will feature friends' recommended songs, top songs, top albums and a "happening now" ticker that shows songs friends are playing.
The blog said Facebook had reached a partnership with European music streaming service Spotify, which is gearing up to enter the US market.