Microsoft is set to release a new version of its MP3 player, the Zune, in America gadget site Engadget is reporting.

Called the Zune HD, the new MP3 player - if the rumours and leaked pictures are to be believed - will sport a large touchscreen display with a single button underneath.

Tech specs appear to be thin at the moment with just a gallery of images to tease with, however the site is going with a "confirmed" rather than just rumour and speculation.

The Zune, which has struggled to get a grip on the US MP3 player market against Apple's iPod range, has yet to make it outside North America. Rumours continue to circle as to whether or not the MP3 player will make it to the UK.

Perhaps this model will be the model to break out of the Americas.