A US company is to start selling a new type of high-definition DVD player claiming that it has the cheapest players on the market.

The HD VMD (Versatile Multilayer Disc) players will compete against the existing Blu-ray and HD DVD players, as well as China's CH-DVD format.

The new format aims to be the cheapest on the market because it relies on older red laser technology rather than the more expensive blue lasers.

"US consumers have waited for an HD solution at DVD pricing and we believe we have met this desire with HD VMD through a stellar quality, high-definition disc and player at a price point that almost anyone can afford," said Mahesh Jayanarayan, chief executive at New Medium Enterprises, which owns the standard.

"With the launch into the US market this month, and an accelerating rollout of HD VMD content and retail distribution partners, we plan to drive adoption of HD in the home."

The firm said that the first models will go on sale in the UK on 1 October from online retailers like Amazon and Dabbs.

The first player will cost £119 and the media itself will be only slightly more expensive than traditional DVDs, while the company has more than 100 films available for purchase listed on its website.