Google Spain and Portugal boss Isabel Aguilera has confirmed that the company is working on a mobile phone. According to Noticias.com , Aguilera said: "Some of the time the engineers are dedicated to developing a mobile phone."

Speculation has been mounting as to whether Google, the internet search engine and online media powerhouse, was planning a move in to portable communications.

One rumour speculated that the phone would be similar to a BlackBerry handset, supporting Voice over Internet Protocol (VoIP) calls.

Venture capitalist Simeon Simeonov of Polaris Venture Partners said in his blog that the phone - codenamed 'Switch' - had over 100 engineers working on it, and would be built by Samsung.

However, yet another rumour suggested Google would partner with Orange, with the phone being built by HTC . The Observer reported that Orange met with Google in 2006 to discuss a joint venture.

Exactly what a Google phone would entail is unknown. But with Google's expertise in internet searching and media delivery, The Observer believes such a phone would be tailored towards the individual and his or her search needs.

Google already works with Samsung, enabling its mobiles to use Google's most popular software: Google Search, Maps and Gmail .