Yahoo! is looking to buy FoxyTunes, the maker of a web browser music plug-in, according to rumours on technology blog, TechCrunch. The site claims that rumours of the deal are circulating in Silicon Valley, but cites no individual source. It is not yet known how much the deal would be worth, but the acquisition would fit with recent Yahoo! music developments.

Earlier this month the search company launched a browser-based MP3 player called Yahoo! Media Player. Based on a widget that Yahoo! released last summer, the player - which is currently in beta - can be embedded allowing developers to play MP3s on their websites. In Nov Yahoo! also launched a flash MP3 player called EasyListener.

Israel-based FoxyTunes is a music app that can be downloaded and used as a web browser plug-in. Designed for Firefox, but also compatible with Internet Explorer, the plug-in lets users listen to music and control various media players, including WinAmp, iTunes, and Windows Media Player through their web browsers. The service claims to make it easy to find lyrics, album covers, videos and biographies of the artists you like, and says it is compatible with "almost any media player." Other features include signing emails with a 'music signature', which says which track you are listening to. Should the deal go through, it will be Yahoo's second Israeli move this month, having recently partnered with search engine Walla, to make its first entry into the country's search market.