The operating system, known internally as Google Auto Link, will be revealed at a software developer conference scheduled for June 25 and 26, according to Automotive News.
Although there have yet to be any clues about what the OS's interface will look like, or which car companies will employ it, some of the basics behind the new system have already been leaked. Automotive News reported that Auto Link is the first product from the Open Automotive Alliance—"a Google-led consortium" including Audi, General Motors, Honda Motor, Hyundai, and chipmaker NVIDIA.
Furthermore, a source told Automotive News that "GAL is not an embedded infotainment system, but a 'projected' system — meaning that smartphones using Google's Android operating system could be controlled using a car's own controls and display screen." Apple's CarPlay is similarly employed.
In what Automotive News deemed a separate project, Google is also working on "new Android platform features that will enable the car itself to become a connected Android device," according to a January announcement.
A Google spokeswoman declined CNBC's request for comment.
—By CNBC staff