NikonRumors claims the new model will be called the Z50, and will be supported at launch by a pair of new APS-C format (DX in Nikon terminology) lenses.
The site says the camera will have a 20MP sensor, an articulating three-inch screen and an electronic viewfinder, and will offer 11fps shooting. The lenses that are rumored to be launching with it are a 16-55mm f/3.5-6.3 kit-type lens and a 50-230mm f/4.5-6.3 telephoto zoom lens.
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These aren't the first rumors of Nikon launching a lower-cost or entry-level mirrorless camera, and it would make a lot of sense for Nikon to enter the mirrorless APS-C market, which until now it's left to rivals Sony and Canon.
If it does launch an APS-C model, it'll be interesting to see whether Nikon uses the same mount across all its models, as Sony does, or splits them into distinct APS-C and full-frame categories with separate lenses, as Canon does.
With relatively few specs to go on it's not immediately obvious who a camera like the Z50 would be aimed at, but it's likely to go head to head with the likes of the Sony A6600, or perhaps the Sony A6100 if Nikon is aiming for the entry-level market.
September and October tend to be busy months for new launches as manufacturers look to cash in on the lucrative Christmas market, so watch this space.