Microsoft is currently experimenting with the controller, which is said to feature a HD screen, surrounded by the "traditional buttons and sticks".
"The next Xbox will be a matt-black media hub with a mission to bring games to life in your living room with augmented reality, directional sound, and a four-player finger-tracking Kinect. We told you all that last month. This month, our sources tell us it will have a touchscreen too," reads the article in Xbox World Magazine (via NeoGAF).
"Microsoft are experimenting with a tablet-like controller with a shape closer to Sony's sleek Vita handheld / Apple's iPad than Wii U's bulky unit - it's an HD screen surrounded by the traditional 360 buttons and sticks.
"On 360 that touchscreen will be second only to Kinect in how you operate your console. It could be a remote control when you're watching TV, a browser when you're on the internet, extra buttons and information when playing a game or a portable display when you want to take your game with you," the post concludes.
The article backs up an earlier report suggesting that the "core" of the new system will be a tablet-like device using the Windows 8 Metro interface, not unlike the Wii U.
Other reports suggest that the next Xbox will launch in two different editions.
One edition, Codenamed "Loop", will be cheaper and focus on Kinect.
Watch a video of the Xbox's latest dashboard update below: