Google TV will combine the company's Android mobile operating system and applications with television devices made for the OS, including set-top boxes, the paper says.
The TV technology will run on Intel's Atom chips, the report says, and Google will develop a new version of its Chrome browser for the TV project.
In a similar report, the Wall Street Journal reported some of the same information. Both papers cited unnamed sources for their information.
Google did not immediately respond to requests for comment.
The use of Android for TV could put applications and other software developed for the OS on TVs in addition to smartphones, the devices the OS was designed for. The companies working on the project, which also reportedly include Logitech, "envision technology that will make it easy for TV users to navigate Web applications, like the Twitter social network and the Picasa photo site, as it is to change the channel," the New York Times says.