Apple's Chief Executive Officer Steven Jobs has been participating in the negotiations and telling studio executives in Los Angeles that he wants to have a deal in place by the fall, the newspaper reported, quoting people involved in the talks.

Disney, which was the first studio to put some TV shows like "Lost" and "Desperate Housewives" on iTunes, is expected to be the first to make movie downloads available via Apple's online service.

But an Apple spokeswoman said that the company would not comment on what she called rumors.

Citing unnamed sources, show business newspaper Daily Variety reported on Monday that iTunes might begin offering movie downloads by the end of 2006, but currently a price on iTunes is a sticking point in negotiations.

On the other hand, studios are also concerned about preserving relationships with traditional partners, including theaters and retailers, according to the New York Times report. Some studios are worried about releasing movies too close to their theatrical release dates.