According to the Wall Street Journal, Dell is sitting on a number of Android prototype devices that offer MID-style internet access. Described as being "slightly larger" than Apple's iPod touch, the touchscreen prototypes are said to be ARM-based and, from the sound of things, very much in the experimental stage.
Dell have made no secret of the fact that they've been experimenting with Android. Back in May the company demonstrated a netbook running the open-source OS, though they were clear that it was only a prototype and not confirmation of an upcoming production model.
This latest leak appears to be more of the same; another source, who claims to have been briefed on Dell's plans, suggests that the Android MID could be put into production for a release later in 2009, or alternatively "the plan could be delayed or scrapped entirely." Dell are apparently considering distributing the MID via carriers, similar to the manner in which their 3G-enabled netbooks are sold; there's also talk of a separate line of Android-based smartphones still in the works.