According to v3.co.uk the mythical Google G-Phone is set for release in 2010.

Google has, thus far, avoided diving into the hardware side of the mobile market, deciding instead to offer its Android operating system as a software platform licensed to other hardware vendors. Rumours of an Android-powered device designed by the tech company refuse to go away however.

The latest spate of buzz sees TechCrunch founder Michael Arrington suggesting that Google is managing both the hardware and software design for the new device in a manner similar to Apple’s approach with its iPhone models.

If the rumours are to be believed then the new Google smartphone would pose the first real threat to the popular iPhone.