Google has "dramatically" reduced the cost of its online storage linked to its Picasa Web Albums service and Gmail accounts.

The online giant is now offering twice as much storage for a quarter of the old price of its 20GB plan, on top of the free allowances available to everyone.

Picasa and Gmail users can now buy 20GB for $5 per year, apparently a result of not just hard drive storage prices dropping, but because Google has been "working hard to improve our infrastructure to reduce your costs even further".

Google says 20GB is enough space for more than 10,000 full resolution pictures taken with a 5-megapixel camera.

Price plans also include 80GB for $20 per year, 200GB for $50 per year, 400GB for $100 per year and 1TB for $256 per year.