Apple is believed to have developed a new iPad application that lets users download a selection of electronic newspapers. The app, which may be called iNewspaper, is said to have similarities with iBooks, the company's electronic bookstore.

The online newsagent will be separate from the company's App Store. Currently, special iPad versions of some newspapers are already available for download.

Speculations abound that Apple has created the app to give users access to a wide selection of newspapers in one place. The software suite will help publishers create digital versions of newspapers and magazines. The software provides capabilities for high-resolution photos and integration of videos into articles.

Apple aims to boost the appeal of the iPad. The app will initially only be available in the US.

Apple is currently in negotiations with publishers over how much the company's share would be for every subscription.

The company may not allow newspapers that are available for free online to collect subscription fees. There may also be discussions over who will have control of user details.

"It is becoming increasingly clear that Apple is the leader of the pack to get content owners to invest in digital content," said Ben Wood, an analyst at CCS Insight.