According to a report in a USA website Cheddar.com, the device, known as "Portal", will be controlled using voice commands and include augmented and virtual reality features along with facial recognition.
Facebook is rumoured to be launching an augmented reality video device this year, according to reports.
It will also be capable of linking up with third-party services, such as Spotify and Netflix.
Reports say the Portal will have a microphone, wide-angle camera and speakers with AI embedded into the device and aimed for everyone to use in a communal room. "We're not commenting on this speculative report", a spokesperson said.
Facebook boss Mark Zuckerberg who will be hoping Facebook's Portal is a success Credit PA
Facebook wants you to video chat on its platform, so it's taking on Amazon, Google, and Apple with hardware of its own.
Looks like Facebook is getting serious about hardware after years of chatter. It looks like a discovered a year ago is part of the Portal project.
The product was designed by a mysterious Facebook department known as Building 8, that is reportedly developing "science fiction-like brain-scanning technology" and other futuristic projects. The social network has also been testing a facial-recognition account recovery system to help users get back into their account after it's locked.
Ellen DeGeneres, Oprah Winfrey talk about deadly mudslides
Mud fills the interior of a vehicle destroyed in a rain-driven mudslide in a neighborhood under mandatory evacuation in Burbank. We can't get in, we can't get out unless you get escorted by the police", Montecito resident Matt McAllister said .