The partnership is expected to be announced next week at the Consumer Electronics Show in Las Vegas, and its aim is to allow for in-car integration of music and navigation apps currently available on smartphones.
According to Cnet, the collaboration is expected to challenge Apple’s iOS in the Car, which aims to integrate users’ iPhones with their car's onboard receiver or ‘infotainment’ system.
The tech giant has so far signed up such automakers as BMW, Honda, Mercedes, Nissan, Ferrari, Hyundai, Kia, and Infiniti to integrate more iOS features into their cars.
However, unlike Apple’s OS, which requires and iOS device, the Google’s Android-power system would run on the vehicle's built-in hardware.
The report added that rival Apple’s infotainment system for cars is expected to kick off as soon as 2014 and could begin appearing in select 2015 models.