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Dell is set to launch an Internet device that runs on the Google Android OS. The device that is the size of an Apple iPod touch is still under wraps. It is not known whether the device which will have Wi Fi.

According to the Wall Street Journal the gadget does not have cellphone capabilities, however insiders have said it will have “touch” capability.

Another person who was briefed on the company’s plans recently said Dell may begin selling the device during the second half of 2009, though this person said the plan could be delayed or scrapped entirely.

In any case, the development effort is one of the first experiments by a big-name PC maker in a nascent category of products known as mobile Internet devices, or MIDs, which are designed to fill a perceived gap between mobile phones and laptop computers.

A Dell spokesman declined to comment on any plans for the product category.

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