Online reports suggest that the smartphones will be based on Google's Android platform and Microsoft's Windows Mobile.
However, sources said that the plans are not finalised and that the company may yet change its mind.
Dell refused to confirm or deny the launch, and a spokesperson told vnunet.com that the company could not comment on speculation.
Rumours that Dell is about to enter the smartphone market have been circulating for at least a couple of years, but now Reuters and The Wall Street Journal have both quoted sources indicating that a launch is imminent.
The timing means that a launch at the Mobile World Congress in Barcelona in mid-February is one possibility.
Microsoft is already expected to make an announcement around Windows Mobile at the show, which may turn out to be Dell's handset launch.
Dell previously sold a range of Windows Mobile-based handhelds under the Axim brand, but these were discontinued in 2007 due to slow sales.
