The LA Times has sparked an international wave of rumours that Google and Wal-Mart will launch a low-cost PC with a Google-made OS at the CES (Consumer Electronics show) in Las Vegas - but it's just not true, the search giant told Macworld UK this morning.

Google representatives in the UK denied the LA Times report as "wholly inaccurate", stressing the company's good relationships with existing PC makers.

"We have many PC partners who serve their markets exceedingly well and we see no need to enter that market," said a spokesperson for Google.

The LA Times reported on Sunday that the Google PC could cost as little as a couple of hundred dollars because it would not use Windows.

Google co-founder Larry Page will deliver a keynote address on Friday at CES. Analysts suspect Page will use the high-profile forum to: "Show off a Google computing device or announce a partnership with a big retailer to sell such a machine," the LA Times said.

A Wal-Mart spokesperson also called the report: "A rumour without any truth to it at all."

Bear Stearns did speculate last month that Google will release 'Google Cubes' - small hardware boxes that will allow users to move songs, videos and other digital files between their computers and TV sets.

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