The Google Nexus Two could be available in the UK through the Carphone Warehouse before Christmas.
According to City AM, Google is currently in talks with the mobile phone retailer regarding an exclusive deal covering its successor to the Google Nexus One – the 'superphone' that was launched by the search engine at the start of the year.
The Nexus One, which is manufactured by HTC, is powered by a Qualcomm 1GHz Snapdragon processor and features a 3.7in 480x800-pixel AMOLED screen.
The successor to the Google Nexus One could hit the UK before Christmas
"It looks like Google is experimenting with the future of its mobile model in the UK. It tried releasing through a single carrier, now it is trying a single retailer," an industry source told City AM.
"It could be a solution to the problems it experienced when it tried to sell the Nexus One exclusively through its website. People like to be able to go to a store – this solves that."
Not much is currently known about the Nexus Two, including who will manufacture the handset. It is expected to run the next version of Google Android's mobile phone OS, which has been dubbed Gingerbread.
Neither Google or the Carphone Warehouse would comment on the rumours.