If reports in the Wall St Journal are correct, engineers at Dell are developing a pocket-sized Mobile Internet Device (or MID) which will run Google's Android operating system.

Two people, who have seen early prototypes, say that it's a little bigger than the iPod Touch, and began development last year after Dell abandoned its MP3 player ambitions in 2006, as previously reported on Pocket-lint.

Dell declined to comment, however one person familiar with the matter said that Dell was considering selling the product alongside cellular providers, much like it's doing with its Mini 9 and Mini 10 netbooks.

We'll keep you posted of further developments as we get them.