LG is indeed working on the next Google Nexus phone, with hands-on reports from slightly dubious anonymous sources claiming it'll arrive running Android 4.2.
Previous reports have claimed Google and LG are working on a redesigned version of LG's recently revealed Optimus G that'll be branded as the next Google Nexus device, with today's developments including a report from a person who's apparently used the LG Nexus. The spy had the following to say about the design of LG's Nexus:
The phone looks surprisingly like the Galaxy Nexus and does not have sharp corners like the LG Optimus we already know. It has a silver’ring like the iPhone 3G around the outer edge of the screen which seemed to be similar to the Galaxy Nexus in size but was much better in brightness.
The anonymous reporter also claimed LG's Nexus model currently runs Android 4.2, with the updated OS showing few obvious changes from the versions of 4.0 and 4.1 already out there on plenty of Android models. EXIF data from a sample photo says the LG Nexus comes with an 8-Megapixel sensor inside.
We just really, really hope it doesn't end up being called the LG Optimus G Nexus, as that's the silliest name possible. [Android & Me]