Samsung is reportedly planning its own virtual reality headset, which could be announced later this year.

As Digital Spy reported citing Engadget, the South Korean electronics giant is moving fast to compete with Oculus Rift and Sony's Project Morpheus.

The VR headset is said to include a display that is "as good [as] or better" than Oculus's 1080p OLED screen, and will apparently undercut rivals in price.

Developers are already testing prototypes of the headset, which will pair with Samsung's Galaxy smartphones and tablets. The final consumer-ready product will work with future Samsung products too, it is claimed.

How Samsung plans to connect the headset with its devices is currently unknown, but it could be wired.

The report also claims that the product is not to be confused with Samsung's rumoured Google Glass rival, dubbed Galaxy Glass.

Facebook acquired Oculus VR, the company behind the Oculus Rift, for $2 billion back in March.

Meanwhile, the Project Morpheus virtual reality headset was revealed by Sony at GDC 2014.