TVs based on 37in organic light-emitting diodes (OLEDs) could be on the market within three years, if Panasonic's plans come to fruition.

The OLED panels will be produced on new production lines that will be installed at the factory of IPS Alpha, a display-panel-manufacturing joint venture owned by Panasonic and Hitachi, according to Japanese newspaper the Sankei Shimbun.

Responding to the report, Panasonic said it was working on OLED technology but did not yet have any plans to start production.

OLED is an emerging flat-panel display technology that uses an organic material in the pixels that emits its own light, so a backlight isn't needed. That helps make the displays thinner and much less power-hungry. OLED screens also handle fast-moving images better and offer richer colour reproduction than current LCDs and plasma screens.

Sony launched the OLED TV market late last year when it began selling the 11in 11in XEL-1 TV in Japan. The TV has won almost unanimous praise for its picture quality and size - it's just 3mm thick - but it is expensive at ¥200,000 (£950). Prices are expected to fall over time as manufacturing lines are improved and volumes increase.

Howard Stringer, chairman and CEO of Sony, recently said his company plans to put a 27in OLED TV on sale sometime in the next year. Toshiba has also said it plans to launch a 30in-class OLED set but hasn't provided details.