A number of websites are offering images and video clips of the device, which is expected to be called the PSP Go.
According to reports, it's smaller and lighter than the original PSP and features a 3.8in display compared to the current PSP's 4.3in screen. Other features include a slide-out keyboard, while Sony is said to have dropped the UMD disk format.
The PSP Go is expected to go on sale in the autumn alongside the current model. Sony declined to comment on the rumours but confirmed it would be announcing new products at this week's E3 show, which takes place in Los Angeles this week.