It's been rumored, sqaushed, rumored and rumored some more, but the Wall Street Journal (pay site) says it has confirmed that Dell is getting back into the smartphone business.

Dell Inc., aiming to rev up sales as its mainstay personal computer business struggles in the recession, is preparing a move into cellphones as early as next month, said people familiar with the matter.

The Round Rock, Texas, company has had a group of engineers working on the phones for more than a year from an office in the Chicago area, these people said. They produced prototypes built on Google Inc.'s Android operating system and Microsoft Corp.'s Windows Mobile software, these people said.

Unwiredview dives a little deeper:

Dell has not committed themselves to launching a smartphone yet and may abandon their efforts anytime. But, according to WSJ, Michael Dell has been looking into a smartphone opportunity ever since his return in 2007.

Also, according to WSJ, Dell smartphone development team spent much of last year meeting with suppliers of phone components, several phone software companies, and Asian manufacturers of phones.

Dell smartphones? As early as next month, eh? Don't sound so surprised. We know they've played a part in the Pharos line. That said, the WSJ is quoting unnamed sources, so anything can happen. But might we see some sort of announcment at Mobile World Congress?