Google and Samsung are rumoured to unveil The Nexus Two, which may be announced on 8 November.
The rumours first surfaced on Android and Me, whose sources have said the phone will be revealed at a press conference from Samsung in New York.
The software is said to be designed by Google and it could be the first device to use Gingerbread, the newest version of the Android OS.
The site claimed the new phone will be used as a reference device for developers to show off the capabilities of Android.
They also noted a report from City AM which said Google would sell a sequel to the Nexus One through Carphone Warehouse in the UK.
Gizmodo soon revealed that a source of theirs has had a hands-on experience with the phone, saying it was quite different from the Nexus One.
The source stated it looked similar to the Samsung Galaxy S. It is said to have a front-facing camera and appears to have a 4-inch AMOLED screen.
Google’s previous phone, the Nexus One, faced its fair share of problems. Google sold it directly from an online webstore, however, it did not attract consumers as they could not see it before they bought it.
Eventually, Google shut down the store and it decided to stop selling the phones.
If these rumours pan out, it will be interesting to see how Google handles its next foray into the smartphone market.