Microsoft has started developing a smartwatch to battle Apple's most anticipated iWatch,
It reviews plans for a wristwatch that would serve as a fitness tracker and could also have lots of functions like a music player, phone and messaging device.
The watch face itself detaches from the wristband and connects to a charging dock.
The project is believed to be headed up by former Nokia CEO Stephen Elop, who runs Microsoft's Devices division.
Microsoft will be playing catch-up to Samsung, which released its Galaxy Gear smartwatch last year.
It shows the gadget being used primarily as a fitness tracker, with an icon hinting it will include a pulse-reading sensor.
Google plans to release the Moto 360 smartwatch in the U.S. this summer, along with a range of other Android powered watches, while Apple has long been rumored to be developing a smartwatch of its own.
Earlier rumours claimed Microsoft drafted in the team behind its Surface tablet to help test prototypes of its smartwatch.
According to technology site The Verge, sources familiar with Microsoft's Surface plans revealed the company had taken the steps to try and get its wearable tech to market.
At the time, the computing giant reportedly asked Asian suppliers to ship 1.5in displays for a potential watch-style device and one supply executive said he had met with Microsoft researchers and developers.
Whether Microsoft will actually end up producing the watch is uncertain, but some investors and technology firms are expecting a boom in wearable electronics, reported the Wall Street Journal.
The new Microsoft watch is believed to have a removable band that will come in a red, black, yellow and blue.
It is also thought to be made of oxynitride aluminium, a translucent form of the metal and will run a version of Windows 8.
Earlier this week Apple was said to be hiring outside help to tackle design problems with its own smartwatch - dubbed the iWatch.
Gadgets such as Nike’s FuelBand are intended to measure physical exercise, while others can perform similar functions to a smartphone such as receiving text messages or taking photos.
One research firm anticipates the market for wearable smart electronics to be a £7billion industry within just three years.
California-based startup firm Pebble Technology now makes a watch that wirelessly synchronises with smartphones and vibrates to alert users of incoming phone calls, emails and Twitter posts.
And a group of students from India have already begun selling an Android-powered watch called Andoirdly.
Some College students from India have launched the first fully-featured Android smart watch with built-in Bluetooth, GPS, Wi-Fi and a camera. The Androidly device can also be used to make calls and send texts and costs £150