TechCrunch claims that the online retail giant will officially announce the title at a press conference tomorrow, and then launch the tablet in the US in the second week in November.
The name Kindle Fire would retain the branding of Amazon's e-reader range, which has been a huge hit with consumers since its launch in 2007.
If the Kindle launch model is followed by Amazon, then it is expected that the Kindle Fire would not be released in the UK until early 2012.
The specifications for the Kindle Fire appear likely to be a seven-inch backlit display tablet running Google Android with a user interface adapted by Amazon.
It is also expected that Amazon will offer the tablet at a lower price point in order to enable it to compete with Apple's market-leading iPad product.
TechCrunch claims that the Kindle Fire will look "similar to the BlackBerry PlayBook", but will feature better software and, crucially, more content.
A big advantage for Amazon is that the firm already has its own Android apps market, which would enable it to offer books, movies and TV shows direct to users to generate revenue.
Amazon is understood to be finalising deals with a number of content providers for streaming video services, and already has several publishers on board for magazines and newspapers.
Meanwhile, retail chain Waterstones recently confirmed plans to launch its own digital e-reader next year, going head-to-head with Amazon's Kindle.