Amazon is rumored to be working on two new Kindle Fire tablets, a 10-inch version and a new 7-inch “Coyote” version.

Boy Genius Report has more: “Earlier reports suggested that Amazon will announce a new addition to its Kindle Fire lineup late next month and while we cannot speak to the timing of Amazon’s upcoming announcements, BGR has confirmed that Amazon is indeed finally readying the launch of its 10-inch tablet.”

Last week Google released the Nexus 7, a 7-inch tablet computer that is a direct competitor with the Kindle Fire, in that it is designed to consume digital media content like apps, music, books and movies from Google Play. Right after Google put the new tablet on presale, we heard rumors that Google is planning to launch a 10″ tablet itself.  (The sources were right about the Nexus 7, so it’s possible that this rumor is accurate).