Apple is believed to have created a new application called iNewspaper to let users read newspapers in a manner similar to the way iBooks lets them read books, The Guardian newspaper said.
The virtual newsagent would be separate from Apple's App Store, where iPad versions of some newspapers can now be downloaded.
"It is becoming increasingly clear that Apple is the leader of the pack to get content owners to invest in digital content," Ben Wood, an analyst at CCS Insight, said in the report.
Some analysts believe Apple has also created software to make it easier and cheaper for publishers to create digital versions of newspapers and magazines.
Apple declined comment on the speculation but was believed to be in negotiations with publishers over how big a cut it would get from each subscription and who would control the subscriber's information.