GOOGLE WILL make its first foray into the mobile phone market with the introduction of T-Mobile's Dream smartphone in New York today.

The T-Mobile phone is the first to run Google's Android software for mobiles. Manufactured by Taiwanese firm HTC, the Dream will carry heavy Google branding as the internet search giant attempts to extend its global recognition into the mobile realm.

A high-end phone, which will retail for $199 when it goes on sale at the end of October, the Dream is being seen by many analysts as a competitor to Apple's iPhone.

Its launch is also a major landmark in the so-called G-phone project which has been the subject of much speculation for the last year.

Leaked photos of the Dream which have been circulating on the internet suggest it will have a touchscreen like the iPhone, but will also feature a qwerty keyboard which will slide out from under the screen.

Other features will include GPS navigation, a "tilt" feature for games and a camera.

To compete with Apple's AppStore, which enables users to buy new iPhone applications through their iTunes software, Google will introduce the Android Market.

For an initial period, all software will be provided free of charge.

Although Google has developed mobile versions of its Gmail e-mail service and done deals with handset manufacturers and network operators to include its search box on phones, Android is its boldest push into the mobile space.

Android is a version of the open source Linux operating system which has been optimised to work on small devices such as mobile phones.

Other manufacturers, including Samsung and LG, say they will be introducing Android phones in 2009.

While the Dream is expected to be offered by T-Mobile in the UK this year, Google has yet to announce any deals with Irish networks.