Console has been in development since 2006.
BGR has reported "a source with knowledge of Microsoft's plans" has confirmed that the Xbox 720 will be unveiled at next year's E3.
The source claims the console has been in development since 2006, however they do not detail Microsoft's launch plans.
This follows VideoGamer.com's scoop of an E3 2012 reveal for Microsoft's next console.
Microsoft, however, has stated the current Xbox 360 is only halfway through its lifecycle. However, with the Wii U on the horizon, and rumours of Sony revealing the PlayStation 4 next year, it would follow that the firm would want to remain competitive.