Microsoft filed a patent with the US Patent and Trademark office last month discussing the recording of media such as television on a gaming console, according to Kotaku.
The DVR features will be embedded within the console menu, allowing media to be recorded whilst playing games, as well as when the system is turned off.
Recorded content can include television programmes, games online or off, music, DVDs and more.
The move fits into the Xbox 360's recent media push, adding the likes of LoveFilm and 4 on Demand as part of a recent dashboard update.
The PlayStation 3 currently offers DVR features as through the Play TV add-on in Europe, using the built-in hard drive to record television.
A recent report suggested the next Xbox will release in two editions, with a formal announcement expected at CES this month or at E3 in June.
> Get connected: Can TV spark a gaming revolution?
Watch a video of the Xbox's latest dashboard update below: