The Microsoft Surface Phone is rumored to be released next year as Microsoft is reportedly waiting on the rollout of the Redstone 3 update for the Windows 10.

Rumor has it that the Redmond-based company's third Redstone update for the software will come with a tweak that will ultimately allow the Continuum on Windows 10 to run x86 apps.

This is one of the obvious constraints of the said feature, which allows users to connect their Windows Phone to an external display or keyboard.

The power needed to make this work on the Microsoft Surface Phone can be provided by the Qualcomm Snapdragon 835 processor, which is also set for a late 2017 release.

Interestingly, Nokia Power User is reporting that there are two versions of the Microsoft Surface Phone. Both will be powered by the said chipset.

However, one will have 4GB RAM while the premium one is getting 8GB and will enjoy the ability of the Continuum's x86 emulation.

There are reportedly prototypes of these purported Microsoft Surface Phone models already. They sport Quad HD displays measuring about 5.5 inches.

The publication also adds that these handsets might arrive with "laptop accessories" such as a Surface Pen and keyboard, like the one on the Surface Pro devices.

While this cannot be confirmed yet, Microsoft CEO Satya Nadella spoke about the company's mobile plans and hinted the possibility of the release of the Microsoft Surface Phone.

It has been reported in the past that the Redmond-based tech giant has given up on mobile offerings, but this might not be the case as Microsoft is looking to get back into the scene for the last time.

"We will continue to be in the phone market not as defined by today's market leaders, but by what it is that we can uniquely do in what is the most ultimate mobile device," Nadella said told Australian Financial Review.

"Therefore we stopped doing things that were me-too and started doing things, even if they are today very sub-scale, to be very focused on a specific set of customers who need a specific set of capabilities that are differentiated and that we can do a good job of."