According to a South Korean report, LG will launch the new device sometime in October.
A LG spokesman said that the firm will indeed launch a Nexus phone sometime this year but did not state when.
The speculation is that LG's Nexus model will have Android M, the latest version of the Android operating system, which will have Android Pay preinstalled.
Earlier reports showed leak specs of Nexus phones made by LG and China's Huawei. The phones had a screen size of 5-inch and 5.7-inch, respectively.
Google has previously partnered with Samsung, LG, Motorola, and HTC for its own brand of phones.
The Nexus models get the 'pure' version of the Android OS without handset maker's tweaks and has been consistently cheaper than manufacturer's branded models with similar specs.
LG gains NSA security certification for G4
LG Electronics announced Thursday that its flagship G4 smartphone has received NSA certification for US government use in managing classified information, clearing the way for the South Korean tech firm to supply US government agencies.
In November last year, a slew of US security agencies gave LG's G3 smartphone the security stamp of approval, including Defense Information systems Agency, Security Technical Implementation Guide, as well as the National Security Agency.
The last few generations of LG flagships, including the G3 and the G4, come with major security features made by LG, including the Knock Code security lock and Kill Switch. The South Korean tech giant also offers GATE enterprise security solution for the devices. LG GATE is an enterprise-grade technologies package that provides secure communication for IT managers and employees, the company said.
Security certifications might not be a purchasing factor for the average consumer, but it does open up opportunities for LG to gain new enterprise clients in the US looking for an Android device. The approval by the NSA also allows LG to tout its devices as reliable to other nations.
The G4 specs include Android 5.1 Lollipop, a 5.5-inch QHD display screen, a 16MP f/1.8 camera and 3GB RAM, and its recognizable leather-coated plastic case.
In a performance evaluation conducted by Consumer Reports in July, the G4 scored 78 out of 100 and ranked higher than the Galaxy S6 and iPhone 6, an LG spokesperson said.
ZDNet Korea's Philip Iglauer contributed to this report.