The first cell phone running on Google's Android will have the search company’s brand on it and will reportedly be priced in line with the iPhone 3G.

According to a report by The Wall Street Journal, the Android phone, also known as “the Dream,” will be available in stores at a price of $199 and will come with a two-year service contract with T-Mobile. Without a subsidy, it will cost $400.

The Android-based handset, which is manufactured by Taiwanese company HTC, will be released on September 23rd when T-Mobile USA plans to hold a press event to mark the occasion.

T-Mobile USA made the invitation for next week’s unveiling of the Android-based cell phone, but did not say whether it will also release the handset then. According to some unofficial reports, the phone will be released in mid-October.

Google and T-Mobile made clear their intentions of releasing separate data services packages, but both following an aggressive pricing policy for the Android-based handset. Google said in a statement that it "wants to see the phone sell at high volumes."

Although HTC tried to keep the handset’s features under tight security, some data about the Android phone has leaked. T-Mobile will reportedly call the Android running phone G1. It will feature a wide touch screen, a navigation track-ball for and a full keyboard. Numerous applications developed and offered by Google will be available on the G1 such as Maps. The new handset will also have an online market place.