Sony has added a new budget handset to its flagship Xperia line, Digital Spy said.

The Sony Xperia M will offer competitive hardware specs at what the firm claims is a "new price point", but the specific cost is yet to be divulged.

Powered by a 1GHz dual-core processor, the device features a 4-inch 854 x 480 display and runs Google's Android 4.1 Jelly Bean operating system out of the box.

Other features include a 5MP rear camera with HDR mode, a front-facing VGA snapper and support for WiFi, aGPS, Bluetooth 4.0, NFC, DLNA and microUSB.

The Xperia M comes with just 4GB of internal storage, leaving the user with just 2GB free at launch, but memory is expandable via microSD.

Sony will released the Xperia M in Q3 of this year, with pricing details expected to be announced soon.