Apple is reportedly in talks to buy headphone maker and music streaming operator Beats Electronics.

The tech giant is planning a $3.2 billion acquisition of the audio company, Digital Spy said citing a report in The Financial Times.

A deal could be announced as soon as next week, sources have told the newspaper. This would be Apple's largest ever acquisition should it go ahead.

Beats Electronics was founded by rapper and hip-hop producer Dr Dre and Interscope-Geffen-A&M Records chairman Jimmy Iovine in 2008. The firm primarily produces products under the brand Beats by Dr Dre.

Beats Music's streaming service launched in North America earlier this year.