Google is working on a new model of its well-received Nexus 7 tablet that will cost $99, according to a DigiTimes report. The tablet is said to launch in the fourth quarter of this year.

There will also be a $199 model of the device, according to the report. (The current Nexus 7 also starts at $199.)

The timing lines up with Apple's expected release of a smaller iPad, the so-called iPad Mini. Apple has all but confirmed it will announce the iPad Mini at a press event in October. Many think the iPad Mini will be priced around $250.

Today's $199 Nexus 7 is a great tablet. If Google can find a way to offer the same experience for just $99, it's going to be tough for people to pass up.

Asus, the company that makes Google's Nexus 7 tablet, denied the report.

Click here for our review of the Nexus 7 >