Apple and Twentieth Century Fox are reportedly set to announce a deal that will allow iTunes users to rent videos.

Diligent Mac users have found references to an iTunes rental service within iTunes for a while. The only roadblock to the service seemed to be Apple securing a movie studio deal.

Details are thin on how the service will work. If an updated Apple TV is introduced at the Mac Expo, it is expected that users will be able to rent videos from the device.

In related news, Fox is planing on releasing DVDs with iPod compatible videos on them.

Expect Steve Jobs to outline the service at his keynote address on January 15th.