The Android smartphone is expected to have superior spec and a dedicated home button.
Microsoft is working on a new Android smarthpone called the Nokia X2, it has been suggested.
According to website BGR India, the latest addition to Nokia's X-series portfolio will have a dedicated home button.
Previously, Nokia customers had expressed their displeasure at the lack of home button on the Nokia X and were unaware that holding down the back button would take them to the home screen.
A report on Uber Gizmo has also suggested that new Nokia X devices will arrive in 2015, citing sources in the Chinese media.
The Nokia X2 is expected to have a 1.2GHz Qualcomm processor, 1GB of RAM and 4GB onboard storage.
These stats are up from the higher end Nokia XL, which had a 1GHz dual-core processor, 768MB of RAM and 4GB of onboard storage.
Source: Company Press Release