Electronics giant Philips has developed a digital disc the size of postage stamp that can hold 4GB of data.
The mini optical disc is small enough to fit into a mobile phone or personal digital assistant, and can record, erase, store and playback data.
This means it will be possible to play movies, games and music or store photographs on a device as small as a phone.
According to New Scientist magazine, the disc - which was demonstrated by Philips in Japan last week - has been developed at the company's Southampton research centre.
The system, known as Small Form Factor Optical (SFFO), uses the same precision blue lasers - Blu-ray - that are being developed for the next generation of high-definition video recorders.
Although the disc will be the same thickness as a current DVD, the material that records the data, which is applied in layers to the disc, is far thinner at 0.1mm, compared to 0.6mm for DVDs.
The disc should be ready for general sale in two years' time.
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