The upcoming Microsoft Surface phone is believed to be released next year and is expected to be Intel-based.

Microsoft watcher Paul Thurrott said on his website that Microsoft is developing an Intel-based smartphone for 2016 "that may or may not be marketed as a Surface rather than a Lumia."

In addition, the International Business Times (IBT) said that the project has been codenamed "Project Juggernaut Alpha." It explained that the Surface phone will come with a 5.5-inch high resolution display, Intel's Atom processor, a 21-megapixel lens and 4GB RAM.

"The Surface phone is said to feature the same industrial design language of the Surface tablets and is currently being tested internally by Microsoft staff," added IBT.

PC Advisor also reported that the upcoming Microsoft handset will look like a mini version of the Surface tablet with "a squared metallic design."

As for storage, the device is expected to store a minimum of 64GB and a maximum of 128 GB plus a microSD slot for additional storage.

Users can also expect that it will have a powerful camera technology, just like what was used in many Nokia phones.

"It could also come with a smaller version of the Surface Pen, and could have a USB-C port," added PC Advisor.

According to MNR Daily, the upcoming Microsoft Surface phone will run on the Windows 10 operating system.

Earlier, Microsoft unveiled its Microsoft Surface Pro 4, which came packed with a resolution of 1440 x 2160 pixels for its 12-inch and 14-inch variants, as per GSM Arena.

BGR added that the Surface Pro 4 has "an insanely cool display feature that allows Microsoft to increase the tablet's screen size without increasing the overall size of the device."

It explained that that the tablet has "an almost bezel-less display" and a "smart frame" technology, which can change the screen size depending on its use.

"In laptop mode, the screen size will measure 13 inches diagonally, while in tablet mode, the screen will be reduced to 12 inches thanks to the smart frame feature," added BGR.

The same report dished that changing the display size will allow users to hold the device comfortably.

When it became available earlier this month, the Surface Pro 4 sold for $899 for the 12-inch version and $2,199 for the 14-inch variant.

TechTimes added the tablet also had a 1 TB version aside from the 64GB, 128GB, 256GB and 500GB internal storage options that the Surface Pro 3 previously had.