The BBC iPlayer application will be available for Xbox 360 next week, according to a report.

Eurogamer understands that the on-demand service will be offered for free to Silver and Gold subscribers of Microsoft's Xbox Live.

BBC iPlayer, which is license-fee funded, was expected to be included in the late 2011 Xbox 360 dashboard update, but the introduction of the premium Xbox Live Gold subscription package proved a bone of contention.

Microsoft has been in ongoing discussions with the broadcaster, and the two companies are now said to have reached an agreement.

The 4oD and Channel 5 on Demand apps are already available to download for the Xbox 360. The ITV Player application will be added to the console later this year.

Microsoft is yet to officially confirm that BBC iPlayer will launch on Xbox Live next week.