Images shared to the Chinese website Weibo indicate the South Korean technology giant will ditch the slab-like design of the original Fold, which opens horizontally like a book, and instead release a foldable device that is reminiscent of classic flip phones.
The Galaxy Fold 2 is expected to launch alongside the Galaxy S11 next year, with a release date anticipated for late February.
Previous rumours have hinted the device will be cheaper and smaller than its predecessor, measuring 6.7 inches when unfolded.
Samsung is also believed to be secretly working with American designer Thom Browne to create a handset that transforms into a "pocketable square".
Samsung does not comment on rumours surrounding unreleased products, however the firm teased a new foldable concept at its developer conference in October that appeared remarkably similar in shape and proportions to the leaked images.
"This brand-new form factor that we're now exploring will not only easily fit in your pocket, but it also changes the way you use your phone," Hyesoon Jeong, Samsung Mobile's head of framework R&D, said at the time.
The original Galaxy Fold, which sells for around $2,000 (£1,520), was beset by various issues with its folding mechanism ahead of its launch earlier this year.
It led to months of delays for the innovative device but this did not dampen demand, according to Samsung Electronics president Young Sohn.
Speaking at an event in Berlin earlier this month, Mr Sohn claimed Samsung had sold one million units since going on sale in September.
When Samsung first unveiled the original Galaxy Fold it described it as "the foundation of the smartphone of tomorrow" and several of Samsung's biggest rivals have since launched their own foldable phones.
Huawei unveiled the Mate X earlier this year, which was also hit delays, while Motorola brought back its famous Razr flip phone at an unveiling event in November.
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