The Wall Street Journal reported Monday that the U.S. coffee giant is joining forces with

Alibaba to launch a delivery service this Autumn.

This comes after local media reports on the coffee brand's possible tie-up with Alibaba's

food delivery unit.

The two corporate giants are expected to announce their deal later this week.

The delivery service comes after Starbucks reported a 2 percent drop in China sales,

amid fierce competition from local brands.