The development is likely to take place across 1,450 stores when Blockbuster expands its hi-def offerings next month. The decision was helped in large part by the increasing availability of titles in Blu-ray, according to sources.

Since last year, both the formats have been highly competitive. Studios are hoping that the HD discs, with sharper picture, interactive special features and games will replace standard definition DVDs.

The formats are incompatible though and neither will play on standard DVD players, although standard DVDs can be viewed with either a Blu-ray or HD DVD player.

Till now, Blockbuster Inc. has been renting both Blu-ray and HD DVD titles in 250 stores since late last year. Consumers habits revealed that Blu-ray titles were being rented more than 70 per cent of the time. However, Blockbuster will continue to rent HD DVD titles in the original 250 locations and online.