(Pocket-lint) - Acer is looking to bring the fight to the budget smartphone wars with the newly announced Acer Liquid Z5. This Android phone features a 5-inch display, but will be on sale for just €169.

That might make it sound like a natural competitor for the excellent Motorola Moto G, but this new handset isn't as fully packed on the spec sheet as the mighty Motorola.

Aside from the 5-inch display - the resolution of which Acer is yet to reveal - there's a dual-core 1.3GHz processor, only 4GB of on board storage, and it's launching it with the older Android 4.2.2 version, making it look slightly behind the times.

However, Acer talks up the 5-megapixel camera on the rear, which is said to offer five lens elements and a 1.4 x 1.4 micrometre pixel size sensor, designed to let in more light and result in less noisy low-light images.

Acer has applied some tweaks to the user interface, with a number of software features to give you an easy mode for kids, AcerFloat to assist your multitasking needs and AcerRapid, offering enhanced one-handed controls.

The Acer Liquid Z5, which measures 145.5 x 73.5 x 8.8mm and weighs a reasonable 147g, also comes equipped with DTS sound. It will be available in white or grey.

The Acer Liquid Z5 will be available in France, Benelux, Germany, Spain, Portugal, Ukraine and UK from mid-January from €169.

Writing by Chris Hall.