By Rhys Blakely

Microsoft could release a new handheld computer, which will compete with Apple`s iPod, Sony`s PSP and BlackBerry`s mobile e-mail device, as soon as this week.

The software giant has admitted that an image of a new handheld console that was leaked on a film production website is a prototype of a device it has developed with a set of partners.

As Times Online reported yesterday, bloggers had already identified a cryptic web site - The Origami Project - as being created by the world`s largest software developer to hype the gadget ahead of its official launch.

The site heralds a product that ``can change your life,`` but offers no concrete details. It promises that consumers can ``learn more`` on Thursday.

According to the Gamasutra site, ``rather than an explicit game-only device, the Origami Project concept seems similar to existing tablet PCs, with a large touch screen display noticeably bigger than either the iPod or PSP.``.

The Wall Street Journal agreed with those reports, citing a person familiar with Microsoft workers on the project. The company later confirmed to Reuters: ``Origami is a concept we’ve been working on with partners``.

It added: ``please know that the video seen on Digital Kitchen’s Web site is a year old and represents our initial exploration into this form factor, including possible uses and scenarios.``

Microsoft has not revealed the identity of its partners on the project.

The video showed young people using the ``Origami`` device to sketch pictures, use a map with global positioning satellite technology, listen to digital music and play a video game.

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