The report claims that the set top box is well into development and will be launched in the first half of the year.
Apple is said to be including a “revamped operating system” into the set top box. It is said to bear more than a passing resemblance to iOS.
The set top box will also include support for a range of new software, suggesting that Apple may add App Store support to the device.
Another report from iLounge added that Apple may be adding direct gaming support to the system, removing the need to download them via an iOS device.
No sign of the Apple TV set
The news may or may not put out the fire of speculation that Apple is working on a TV set with built in Apple TV support.
The company is widely expected to launch the long rumoured and much anticipated iWatch later this year.
However, many commentators also took his comments to mean Apple may choose to launch the Apple iTV this year too.