Is Facebook finally going to take on MySpace as a place for bands and music fans to hang out? We’ve heard various Facebook Music rumors before. The latest one comes from CO-ED Magazine.com (so you know it’s got to be true!).

According to CO-ED’s executive editor Stephen Gebhardt, who says he heard it from a group of marketing managers at a major music label, Facebook has been holding secret meetings with all the music labels and will announce Facebook Music next week at New York’s ad:tech conference (where it is also expected to announce its social ad network).

Here are the details Gebhardt was able to gather: Facebook Music will essentially be a way for musicians (or their labels) to create their own fan pages just like on MySpace, each with a separate sub-domain within Facebook. Facebook members will be able to join any artist’s network as a “fan.” This will be similar to joining a group, but centered around music. Members will be able to listen to streamed songs, watch videos, add music to their own pages, find out about upcoming tours, and meet other fans. Facebook is also supposedly working on sales widgets for these pages (to be introduced at a later date) so that artists can sell downloads directly through Facebook. (Watch out iTunes).

MySpace, Apple, Google . . . who will Facebook pick a fight with next?