Several technology companies have been working on building hardware and software for Virtual Reality (VR). Some recent VR offerings have come from Oculus with its Oculus Rift, Sony with its PlayStation VR, HTC with its HTC Vive and Samsung's Gear VR.
Though Google already has its Google Cardboard in the market, it is currently inexpensive and elementary, and previous reports had suggested the company was trying to enhance the scope of its VR ambitions, based on job listings.
The report indicated the VR device would have new plastic casing, and the ability to support a bigger variety of smartphones than the Gear VR. It will also feature better sensors and lenses. The report notes the device would draw "most" of the processing power from the smartphone.
The hardware could be "another Nexus-style product" likely to "arrive in September".
Google, however, has a tradition of unveiling new hardware at its annual developer conference, I/O.
The report does not shed light on another of Google's rumoured products, the Android VR operating system, and there could be a possibility the VR hardware could arrive alongside the Android VR.
With the Android VR, it will be easier for developers to write apps meant for virtual reality.