Spotify has submitted the app, which is expected to allow users to search Spotify's entire catalogue of tracks and the stream the songs on their phone, to Apple's iTunes App Store. If Apple approves the app it will be made available for handset owners to download.
Spotify allows users to create a playlist of songs and listen to the tracks on the playlist through their PC. It also offers the ability to create 'collaborative' playlists, which are assigned their own web addresses, and can then be added to by other Spotify listeners.
Rumours surfaced earlier this year that the music streaming service was working on an app for iPhone users, after the company hired former director of product management at Yahoo Gustav Söderström as director of 'portable solutions'.
Spotify is currently free to use, although the tracks are peppered with adverts just like commercial radio. However, for 99p, users can purchase a whole day of ad-free listening time, or alternatively pay a £10 monthly subscription and never hear an advert again.
While Spotify has yet to reveal the pricing for the iPhone app, many believe it will only be available to those who have a monthly subscription with Spotify.
Spotify recently signed a deal with the Independent Online Distribution Alliance (IODA), which has expanded the music streaming service's catalogue of song by an extra two million tracks, and now includes artists such as Bob Marley and The Prodigy.
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See also: Microsoft to launch Spotify rival