Unattributable, grainy shots of the device have been doing the rounds on the internet for several months now, but sources within Google told the Sunday Tribune a handheld device is being discussed now. This runs counter to the official Google line that it is not interested in hardware.

Google has made no secret of its desire to get into your pocket, and in Ireland customers of 3 will already have spotted the Google search browser installed in their handsets.

Furthermore, it has been confirmed that Google's Maps application will be pre-installed on Apple's iPhone when it reaches these shores, reportedly by Christmas.

Google has said it will drip feed more information on what this means in the coming months, but the speculation is that combining the wireless network capabilities of the iPhone with Google's location based services could transform the iPhone into a pocket copy of the Golden Pages including "live" information such as cinema listings, pizza delivery areas, directions to the nearest functioning ATM, and even tracking your iPhone-wielding buddies around the neighbourhood.

Sources within Google said the directive the mobile phone teams are working under concerns making Google applications mobile phone friendly in terms of functionality . . . in conjunction with operators . . . and, of course, making sure ads can be displayed on mobile services.

The other titbit to emerge from Google's software engineers is that they are considering how to implement services including mobile Gmail and Google maps without installing software on portable devices.

This means all data would be stored on, presumably, a network either owned by Google, or more likely in a deal with a mobile operator. Thus the Googlephone becomes merely a wireless tool for accessing data which is all stored on one of the company's giant server farms.

This is not as unlikely as it might first appear. Google is currently considering bidding for a large slice of radio spectrum in the US but has not revealed what it intends doing with it yet.