Dell is reportedly looking to enter the handset market with a device roughly the size of Apple's iPod touch and running Google's Android operating system.

A report in The Wall Street Journal said that the handset would not carry mobile phone components, but function as a handheld internet device only.

The report also suggested that the handset could hit the market later this year, although the decision to release the product has not yet been confirmed.

Dell has long been said to be working on various handheld devices. The company was rumoured to be developing a portable media player last year, and reports surfaced in early 2009 that a smartphone device was in the works.

If Dell does release a handset, the vendor will add its name to the growing list of companies jockeying for position in the market for internet-capable handsets and smartphones.

Newly released handsets include the Apple iPhone 3GS, the Palm Pre and the T-Mobile myTouch 3G. Google also said that it expects the market for Android devices to balloon in the coming months.