Amazon, the world's largest online retailer by sales, said that Kindle owners will be able to borrow e-books from 11,000 libraries and make electronic annotations in the books but did not give the exact timing of the service's launch.
Amazon introduced the market-leading Kindle in 2007 and has priced most of the e-books it sells for less than $9.99 to speed up adoption and ward off competition from devices such as Barnes & Noble Inc's Nook and Apple Inc's iPad.
Barnes & Noble introduced library lending at the same time it launched Nook in October 2009.
Amazon shares rose 2.2 percent in morning trading.