Sources with knowledge on the matter told the Sunday Times the organisation is planning to introduce an iPad-style slate in time for Christmas, although very little further information is known at this time.
While this has been neither confirmed or denied by the company, insiders have claimed the tablets will be pre-loaded with films, music and books - along with apps for the Tesco digital grocery and banking arms.
In addition, consumers who purchase the product will also be given access to Blinkbox - the organisation's web-based film and music service.
Sources claimed that Tesco is looking to come up with a high quality device that is similar to the Kindle Fire, but it is likely the retailer will aim to make the product as low-cost as possible in order to make it attractive to customers who are on a budget.
Rumours also suggest the company will opt to run its latest innovation using Google's Android operating system.
The move is said to be in response to the damaging effect Apple and Amazon's tablet offerings have had on Tesco's profitable DVD and book sales in recent years, thanks to the ongoing popularity of the companies' slates.
Tesco will not be the first supermarket to release a tablet on to the market, with Asda being the first to do so two years ago. Although the brand's Arnova 8 is no longer on sale, the Wal-Mart-owned brand does sell the Prestigio Dual Core Android Tablet.
Speculation regarding the Tesco tablet coincides with the release of research findings from IHS, which claimed the popularity of tablets is continuing to soar - due to the fact that consumers are still looking to make the most of smaller products on the market.
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