The display has the same size as that of Samsung's latest Gear smartwatch.
Google and LG are also expected to introduce a new flagship smartphone along with a smartwatch this fall - possibly the Nexus 6.
During this week's SXSW Interactive, Sundar Pichai, Google's head of Android, confirmed that the company is committed to wearable technology devices and that the company would launch a special developers kit before the end of March that will help developers to use Android as an operating system on everything from fitness bands to smartwartches and headsets.
HTC and Asus have both confirmed that they are currently prepping smartwatches that will launch before the end of 2014. And Apple is also expected to enter the market with the iWatch at some point this year.