The two firms are said to have joined forces to launch the LG Optimus G Nexus, a device that will run a refreshed version of the Jelly Bean operating system dubbed Android 4.2.
Android and Me reports that Google is planning to open up the Nexus brand to other manufacturers, but will impose strict guidelines for any hardware released under its umbrella.
All Nexus devices must have at least 64MB of secure memory on board and be compatible with the upcoming Android 5.0 Key Lime Pie, which is rumoured for an autumn roll out.
The news follows reports that Google is planning to launch a new flagship Nexus hardware this month with a refreshed version of Jelly Bean on board.
The rumoured LG Optimus G Nexus has been tipped for a November release.