Apparently the company has been planning to expand its range for some time, but has accelerated its plans thanks to the rapid development of the Google Home speaker.
According to the source, the new device is set to be revealed next month, although the timing could apparently change.
From audio to video
Before the announcement of the Amazon Echo Look we would have been skeptical of the idea of a screen-equipped Echo, since the point of Amazon's smart speakers so far has been to create an entirely auditory experience.
If these rumors end up being true, it would see the Echo lineup transitioning from a lineup of smart speakers, to a voice-controlled personal computer range.
While the additional functionality could be useful, it also potentially loses what made the Amazon Echo such an interesting product in the first place.