The firm is chatting up network operators with an eye on flogging a phone with all its favourite bits and bobs on - search, webmail and, quite possibly, its own browser.
The paper says the Google has already invested a small fortune in developing the gadget and has a bunch of prototypes which it has been showing off to the likes of T-Mobile and Verizon Wireless.
Google phones won't be go on sale before next year, says the paper, citing no-one in particular but it never used to make stuff up, as far as we know. Maybe times have changed.
The WSJ seems to reckon Google is interested in putting adverts on phones and cites a comment Eric Schmidt made in May to the effect that ads on phones are "twice as profitable or more than the non-mobile phone ads because they're more personal."
Obviously, to personalise ads more, the best way to proceed is to keep and eye on what the user does with their phone, what they browse, who they speak to and even what they say.
Do you think they wouldn't?
More chez Rupe, here. µ