Amazon is once again denying reports that it plans to roll out an ad-supported streaming video service separate from Prime Instant Video. Rumors of the move began circulating last spring, and though the online retailer flatly denied them at the time, now the rumors are back.

This time, the New York Post reports that sources have confirmed the streaming service is a “definite go” to launch early next year. Decoupling the ad-supported service from the $99 a year Amazon Prime Membership will allow the e-commerce giant to offer the standalone video service at vastly more competitive prices, which could potentially undercut both Hulu and Netflix.

“If they do an ad-supported service, they will decouple it from Prime and that is a Netflix killer,” Wedbush Securities analyst Michael Pachter told the New York Post. “It won’t be $99 a year.”

Lest any disgruntled Netflix users get too excited though, Amazon is denying the report.

“We’re often experimenting with new offers and experiences for customers, but we have not announced any plans to offer an ad-supported video streaming service,” the company told Engadget in a statement. “We currently offer the first episode of some television shows free with ads through our First Episode Free feature on Amazon Instant Video, and there are display ads on some short videos such as movie and game trailers.”

Savvy readers will note that this statement is somewhat of a non-denial denial. “We have not announced any plans” does not preclude any future announcements. So a standalone, ad-supported streaming video service could still be in works. Stay tuned.