Korean technology site ETNews, who cite industry insiders, said the device will look like a regular 5-inch smartphone, slightly smaller than the new Samsung Galaxy S7.
Once unfolded, the device's screen will expand to seven inches, the size of a small tablet.
It's not clear what the phone will look like or how the folding action will work, but it's no secret that Samsung and its competitors have been working on flexible screen technology for years.
Samsung also filed a patent in March for a phone with a 'rollable' screen, which can expand by being pulled up by the user like a window blind.
A flexible phone has been slated for imminent release for the last couple of years, so it's important to take this latest rumour with a pinch of salt.
However, a launch next year would make sense - the smartphone market is slowing down after a decade of explosive growth, and new devices are increasingly similar to their predecessors.
Concerned that the limits of what can be done with a palm-sized rectangular phone are being reached, tech companies are looking for the next big thing.
Bringing out a foldable phone would shake things up and put Samsung at the front of the pack, leading a number of technology analysts to believe it could release the device in the next year.
Samsung doesn't comment on rumours relating to its upcoming releases, so we may have to wait for more leaks to see if this one holds any water.
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