The Google-branded device may also stream other media choices in addition to music, the Journal reported Thursday anonymous sources familiar with the company's plans as saying.
The Google home entertainment system, which could appear this year, would let users download digital content and stream it to other home devices made by Google or by other vendors.
The product is comes from Google's Android team, the Journal said.
Google already offers a cloud-based online music service called Google Music, integrated with the company's Google+ social network, that lets users store and play back music.
The home entertainment system would mark a significant shift in strategy for Google as the first consumer electronics device designed and marketed under the Google name, the Journal said.