Gurman says the app will let people record short videos on their iPhone and then apply filters and doodles on top of them - just like Snapchat and Instagram.
In fact, one early version of the app sees users recording square videos, which is similar to how Instagram users take photos.
Videos recorded and edited through Apple's new app could then be uploaded to social networks like Facebook and Twitter, Bloomberg reports.
Apple is reportedly aiming the app at younger users who regularly use apps like Snapchat or Instagram but may not see the appeal of Apple's social networking features like iMessage.
Bloomberg reports that the app is being built with a target release date of 2017, but that could change. That means that the video editing app won't be in the upcoming iOS 10 software release.
