Google and LG are planning to launch a new Nexus device in October that will incorporate the company's mobile payment system into the hardware.
According to ZDNet, the device is likely to come preinstalled with Android M, the latest version of Google's Android operating system, which will include Android Pay.
LG has confirmed that it is working on a new Nexus phone that will be released in 2015, but has not disclosed any further details or when exactly consumers can expect to get their hands on the device.
Google has worked with a number of manufacturers for its Nexus phones in the past, including Samsung, LG, Motorola and HTC. Earlier reports have suggested that Chinese manufacturer Huawei may also be working on a Nexus model.
The Nexus phones are installed with the 'pure' version of the Android OS, without any additions by the handset manufacturers. They are intended to push forward software capabilities while also remaining cheaper than many branded models with similar specifications.