The deal, which will be formally announced Monday, calls for Yahoo to promote Rhapsody on its site.
Scott Moore, Yahoo's head of media, says the partnership would allow Yahoo to focus its energies more on free, ad-supported music and other media offerings.
Yahoo Music Unlimited lets users download an unlimited number of tracks that are playable as long as their plan is active.
Under the new deal, Yahoo subscribers will be shifted to the Rhapsody service sometime in the first half of this year.
