According to a Sunday report in The Wall Street Journal (WSJ), sources in-the-know have confirmed that Internet biggie Google is testing a new Android-based mobile, which it intends selling directly to consumers, rather than through a wireless carrier.

As per the report, HTC Corp is manufacturing the mobile device, named Nexus One, for Google; and it is likely to hit the markets next year. With its own device, Google will directly take on the Apple iPhone, the Research in Motion (RIM) Blackberry, and the existing Android phone makers.

While T-Mobile USA’s G1 was the pioneer Android-based mobile which Google launched last year in September; the last-month released Motorola Droid from Verizon Wireless became the first smartphone to run Android 2.0.

Since the reported Google phone will run its own Android operating system, it will enable Google to make its search engine and other services easily accessible on the phone. In fact, Google is said to have designed virtually the entire software experience behind the phone – including the applications that run on it as well as the look and feel of each screen.

About the supposed Google phone, Mario Queiroz, Google’s VP of product management, said in a company blog post that the device had been handed out to Google employees worldwide, in order to enable them “experiment with new mobile features and capabilities,” and give quick feedback on the new technology.