According to sources quoted by occasionally correct tech industry news source DigiTimes, Asus is creating a 7" Android tablet for Google, which could launch as early as May this year.

It'd be a cheap machine, costing $250 maximum, or around £160 at today's exchange rates, so we'd be lucky to see it launched here at a £199 price point after taxes have been whacked on and everyone's added a little percentage for troubles.

The site's sources claim HTC was also in the running as a potential partner to create this official Google tablet, but wasn't keen on producing a budget machine that might impact upon its hard-earned reputation as a high-end tech producer. Asus wasn't so bothered. So got the job.

If true, it'd be an exciting move. Asus has made the best Android tablet by a mile in the form of the original Eee Transformer (pictured above), and with Google's backing on the software and marketing side it could well be the "killer" Android tablet Google really needs. [DigiTimes]