There is further speculation that Tesco could use the HUDL brand name for its new range.
The Sunday Times says the retailer is planning to launch the device in time for Christmas, with preloaded books, films and music. It is described as ‘high-quality’ by a source.
It will also have apps for Tesco’s digital grocery and banking products and Blinkbox, its internet film and music service.
In May, Tesco applied to trademark the HUDL name, with the application stating that the mark was for ‘tablet computers; accessories and devices for use with tablet computers’.
The HUDL name also appears on the Tesco website, but no products are listed under the search term.
Tesco has not commented on the reports.
Earlier this month, Tesco launched a huge new store format, featuring the brand’s Harris + Hoole and Giraffe outlets. The first new Tesco Extra format opened in Watford.