Now, a more detailed report from the blog Inside Facebook says that this will become reality “in the first part of 2010.” According to their sources, MySpace is thinking along the same lines as Yahoo, who earlier this week announced major Facebook integration across many of its services. That thinking could essentially be summarized with the old proverb: If you can’t beat them, join them.

For MySpace’s purposes, that hypothetically would mean users accessing the site with their Facebook credentials, and then sharing back the increasing amount of exclusive entertainment type content that the site has been acquiring to their Facebook friends. In turn, MySpace gets more traffic that it can sell to advertisers, but ultimately cedes the race to be the Web’s social identity provider.

That space is seemingly a war that will be waged between Facebook and Google . The latter just launched integration with Twitter earlier this week, that allows users to sign into Google Friend Connect— its Facebook Connect rival — with Twitter. Maybe social identity ultimately won’t be that complicated after all.