Facebook and HTC are reportedly working to build a smartphone powered by Google's Android mobile operating system, according to the blog All Things Digital.

The project, code named "Buffy," is aimed at making a handset that would integrate Facebook.

Facebook hopes to release the new phone in the next 18 months,according to the blog post.

A Facebook spokesman said: "Our mobile strategy is simple: We think every mobile device is better if it is deeply social.

"We're working across the entire mobile industry; with operators, hardware manufacturers, OS providers, and application developers to bring powerful social experiences to more people around the world."