The third-generation iPad has a "truly amazing" display, an Apple employee is reported as saying.
The New York Times quotes the anonymous employee as saying that the new iPad is "essentially the same size and shape as the iPad 2".
There will also be a new, faster processor, the source told the NYT. However, the article casts some doubt on whether the device will actually be called the iPad 3 at all.
The report comes on the back of a busy few days for the iPad rumour mill. The Next Web is reporting that Apple is in 'crunch mode' in preparation for the launch of the next-generation iPad, with apps to be shown off for on-stage demos and advertising being prepared.
"Apple's pre-event weeks are often spent soliciting demonstrations from many app developers and preparing demonstrations of those apps for the live event. Our sources tell us that this selection process is continuing at an increased rate as Apple looks to finalize the lineup for the iPad 3," the report claims.
The latest thinking is that an announcement will be made in the first week of March, with the actual launch around a week later.