Google is planning on expanding its advertising empire with the acquisition of Adscape, a company that specialises in technology that allows adverts to be placed in online video games.

According to a report in the Wall Street Journal, a deal could be announced later this week.

"We are always considering new ways to extend Google's advertising program to benefit our users, advertisers and publishers", said a spokesperson for Google.

"In-game advertising offers one such possible extension among many others", said the company.

The deal would follow Microsoft's purchase last May of Massive Inc, who also specialises in in-game advertising. Currently its clients include gaming firms like 2K Sports, Codemasters, Konami and Eidos.