A report has emerged that claims Google is working with Taiwanese chip manufacturer MediaTek on a new Nexus device that will be aimed at the budget end of the smartphone market.

Chinese language website mtksj.com, which is somewhat of a MediaTek specialist, writes that sources have told it that Google has teamed with the chip firm to build a low priced smartphone. The "trusted insiders from Taiwan supply chains" say that the handset will cost as low as $100 in the States (£59.50).

READ: Nexus 5 review

The site claims that the "overall specifications should not be too high" and while the price is just a guess, every indication from its sources hint that it would be an entry-level phone.

Phone Arena speculates that the handset will not be the forthcoming Nexus 6 - which is bound to happen at some point - or a differently-named successor to the Nexus 5. It may never even reach the UK or US and be destined for emerging markets instead.

Of course, it could be a rumour that ends up going nowhere. We'll let you know if we find out more.