The new Apple TV will reportedly be slimmer and feature a redesigned "tactile" remote with increased capabilities when compared to the previous generation's remote.
Apple is also making changes to the software inside the streaming box too, and will include a redesigned operating system that will include an App Store for the first time.
There's no App Store on the current Apple TV; users are instead presented with every app that is available by default. But as Apple continues to enter discussions and strike further deals with content providers, it could be thinking that the time has come to allow users to choose which apps they store on the device, just as it does with its iPhone and iPad.
The report states that Apple was initially aiming to debut the new Apple TV as early as this month, but with renewed reports of new content partnerships such as HBO's new HBO Now service, the device could be delayed until later this year.
The Apple TV originally started out as a "hobby" product for Apple, but after reaching more than $1 billion in sales in 2013, Tim Cook has said that "It's a little more difficult to call it a hobby these days."
You can read Gurman's full report over at 9to5Mac.