Samsung has reached a potentially exclusive strategic deal with XM Satellite Radio.

The partners will work together to develop MP3 players which also work as satellite radios. XM has also reached a retail partnership with Napster.

"Under the terms of the accord, Samsung will begin selling by the end of 2005 two miniature flash memory players that will come with a kit allowing them to receive XM satellite radio stations," reports MacObserver.

The service will let users connect to an XM-ready antenna. Listeners will also be able to buy and download music that they hear as a result of the Napster partnership.

The report points out that the news means Apple is effectively unable now to reach a similar deal with XM, which is the "world's largest radio satellite provider".