Currently Spotify streams music at 160Kbps, but in the latest release Premium users – who pay £9.99 a month – will get the option to stream at up to 320Kbps using the Ogg Vorbis q9 codec.
Spotify claims this is "equivalent to CD quality and the highest streaming rate for any digital music service".
Daniel Ek, CEO and founder of Spotify, says: "Providing great sound quality has always been an important goal for us. Now, we're taking the next step in offering an unparalleled listening experience."
To listen to the new high-quality stream, Premium users simply go to the Preferences menu and tick the "Enable high bitrate" box.
Initially, just the most popular tracks will be available at the higher bitrate, with the entire catalogue being converted to 320Kbps over the next few weeks.