According to people familiar with the matter, Googles move is another effort to grab market share from Apple and Samsung,
A report by the Wall Street Journal quoted some sources, as saying that Motorola is working on two fronts: devices that will be sold by US carrier partner Verizon Wireless, and on the X phone.
Motorola plans to enhance the X Phone with its recent acquisition of Viewdle, an imaging and gesture-recognition software developer.
According to the Journal, Motorola is also expected to work on an "X" tablet after the phone, the Sydney Morning Herald reports.
The report pointed out that Google chief executive Larry Page had also promised a significant marketing budget for the unit.