New tablet-style computer that Apple is widely expected to launch on Jan 27. Any move in the ebook market by Apple would pose a serious challenge for the likes of Amazon, which makes its own ebook reader, the Kindle, and Sony, which also has a range of ebook reader devices.

Sources close to the negotiations say that HarperCollins will be allowed to set its own prices for the electronic titles, and that the digital downloads will include “extra features”, thought to include video, author interviews and social-networking applications. Apple will take a percentage of sales.

Other publishing companies, including newspaper and magazine groups, are also reported to have been in discussions with Apple about making digital versions of their content available for download through the rumoured new touch-screen device.

It remains unclear whether the ebook downloads would be handled by a stand-alone Apple ebook store, or whether they would simply be added to the existing iTunes library of movies, TV shows, music and apps.

Apple is holding an event on San Francisco on Jan 27, at which it is widely expected to take the wraps off a tablet-style computer. It is thought the device will look something like a larger version of the iPhone, with a 10in screen and multi-touch support.