A Wall Street analyst has said that Google is building software for phones, but not for a its own phone according to Reuters.

The news service has Piper Jaffray analyst Gene Munster quotes as saying that Google appears to be building software for Web search on cell phones and location-finding services to work with Apple iPhone and other cell phones.

"We believe Google is working with, not against, Apple in the mobile world", Munster said.

The news comes on the back of a comment made to Spanish newspaper Noticias by Google Spain chief Isabel Aguilera.

She told the paper that the company was working on the phone, along other projects, as a means of gaining access to information while on the move.

"We obviously need another mythical mobile to drool over and speculate about - and the natural candidate is, of course, the so-called Google phone", gadget site Engadget wrote earlier this month.