Questions about the much rumoured Google phone have been on the minds of every Android tech fan over the last few months. Is it real? Who will build the device? What will set it apart? As it turns out, the rumours that Google plans to launch a phone designed in-house are true.

While there is still speculation as to what will differentiate the device, Google confirmed in a blog post on Saturday that they were testing a device “that combines innovative hardware from a partner with software that runs on Android to experiment with new mobile features and capabilities.” According to the post, Google employees were given devices for testing over the holiday season, a process Google refers to as “dogfooding.”

Reports as to who will manufacture the device for Google are still unconfirmed, but fingers point towards HTC. Beyond reports that the phone is incredibly slim and features the Android 2.1 OS, there is very little information on specifications. We’ll just have to wait and seen.

A photo of the device was posted on Twitter yesterday.