Amazon looks set to announce a large screen version of its Kindle ebook reader for digital newspapers this week.

A press conference scheduled for Wednesday morning in New York is being held at Pace University, which housed the New York Times in the 19th century.

According to Engadget, the conference will feature the current publisher of the New York Times, leading to widespread speculation that Jeff Bezos will be launching the long-awaited tabloid Kindle 3.

Will it be colour?

An article in the New York Times itself speculates that Amazon will be launching a "larger version of its Kindle wireless device tailored for displaying newspapers, magazines and perhaps textbooks".

The Kindle currently offers subscriptions to over 50 newspaper and magazines in the US, including the New York Times for $14 (£9.50) a month.

However, the current device's 6-inch monochromatic e-ink screen is suited to neither displaying multiple news stories nor graphically-intense magazine features - nor the display adverts that both outlets rely on.

Digital newspapers on the Kindle have also been criticised for updating late in the day, and not allowing a search function through the day's paper.

TechRadar will be following the press conference and will post full details of the new device as they emerge.

Via Engadget.