Apple has denied a New York Post report claiming the company to have been forced to raise song prices through its iTunes Music Store.

Apple spokeswoman Natalie Sequeira told Reuters: "These rumors aren't true. We have multiyear agreements with the labels and our prices remain 99 cents a track."

The New York Post had reported that the big five labels, principally Sony and EMI, had forced Apple to raise prices to $1.29 a song on some tracks.

Apple's denial confirms comments from company CEO Steve Jobs last week, who had said prices remain 99 cents per track, predicting album prices would fall. On the latter he observed: "They have to, so they sell more albums."

Macworld UK approached Apple Friday morning requesting clarification on the New York Post report. Apple at the time refused to clarify this, stating that it does not comment on rumour or speculation.