According to Recode, Nokia's forthcoming VR kit will be built in-house by Nokia Technologies.
Invitations for a press event next week have been sent out with the cryptic tagline "Nowhere/Now Here".
Nokia declined to comment.
A virtual reality product would compete against a number of high-profile virtual reality and augmented reality devices, from Microsoft's HoloLens and Facebook-owned Oculus Rift to the Google-backed Magic Leap as well as offerings from Sony, HTC, and Samsung.
The company earlier this month hinted that it could return to the handset business, at least as a manufacturer.