An unnamed source has told CNET that Barnes & Noble is preparing to unveil a new colour Nook e-reader at event on Tuesday October 26.

Though details are naturally sketchy, word suggests the 7 inch full colour touchscreen device – supposedly named the Nook Color - will be powered by Android, perhaps more closely relating a tablet than a standard e-reader.

Giving the nod to Nook

The site's tipster, which it claims has been reliable in the past, says the device isn't necessarily a direct response to the latest Kindle, which now – in the US at least – has a handful of compatible games, but rather represents an attempt to fight off the onslaught of iPad.

"It's a big step ahead, instead of chasing Amazon," the source told CNET, conceding that its functionality is likely to fall well short of Apple's tablet, but that will be reflected in its $249 RRP.

However, though such a device would represent something of a departure from all Nooks released to date, CNET's source claims Barnes & Noble will continue to sell existing models to provide consumers with choice, both in terms of functionality and price.

[source: CNET]