Apple and News Corp have reportedly been preparing to introduce a new digital newspaper, called the Daily, very soon.

The US media is claiming that media giant News Corp’s chief 79-year-old Rupert Murdoch and Apple CEO Steve Jobs have plans to unveil the Daily by the end of running month, with a possible roll out in the first quarter of 2011.

The Daily, which will be an iPad only newspaper, will run from the 26th floor of the News Corp’s offices in New York, where around one hundred journalists have been hired.

The digital newspaper will likely cost the iPad subscribers merely $0.99 cents per week as there will be no printing or distribution costs.

Mr. Murdoch is said to have gotten the idea for the project from a survey that suggested that readers spent more time on their iPads than on the internet.

Estimates suggest that there will be more than 40 million iPads in circulation by the end of next year.