According to anonymous sources, HTC is working on a Google tablet that will compete with the yet-to-be-announced Apple tablet.

HTC, who have been working closely with Google for the past 18 months have several working models of a touch tablet including one model, is based on the new Google Chrome Operating System say sources.

An Android based device which is set to be shown privately to core HTC customers at the CES Show is set to incorporate new Qualcomm processors, touch technology and new software from Adobe.

Google developed the Android operating system for mobile phone operators with several including HTC, Motorola and Samsung now rolling out new models.

The Nexus One – a reference to the film Blade Runner – will run the Android operating software in a handset developed by HTC. Photos of the Nexus One have since circulated the internet, with even a YouTube video emerging, which had a detailed look at the new device's interface.