A new patent filed by Microsoft hints at a device supported by flexible hinge that would transform a phone into a tablet.
The flexible hinge will also let users set up the device in tent mode similar to Lenovo's Yoga tablet.
"There appears to be modes for two or three screens to extend flat out to make the device bigger and more of a tablet like Microsoft's original Courier concept," tech website The Verge reported on Tuesday.
Microsoft is also working on a new version of its Surface Pro tablet which is set to arrive in the first quarter of 2017.
The new Surface Pro 5 2-in-1 will sport an ultra-HD display and magnetic charging stylus, with Pegatron Technology that will manufacture the device.
The company is also reportedly planning a new Surface Pen to support the Surface Book 5 that would use magnetic charging - a first for the company's Surface Pro line.
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