MUMBAI: Dell is set to launch a new MP3 player in the US market, a gadget that will directly compete with Apple iPod, says a report in The Wall Street Journal.

The MP3 player will be packaged with an online download pattern similar to that of Apple's iPod, and will reportedly be available on shop shelves by September.

The report says that Dell officials have been busy testing the digital music player that will have a small screen with basic button controls featuring a Wi-Fi connectivity to wireless download.

The Dell gadget will be priced around 100$. The company had withdrawn itself from the music market after its DJ Ditty player failed to make major inroads.

This time, if the company goes ahead with the music player, the strategy is different, Dell's vice president of consumer sales Michael Tatelman told WSJ.

Apparently, the company is working on making software for a range of "portable PCs" that will let users download and organise music and movies from various online sources.