The daily, citing unnamed sources within Yandex, reported that the browser should be available in the fourth quarter.
Yandex, known as the 'Russian Google' and which raised $1.4 billion when it floated on the US Nasdaqstock exchange in May 2010, declined to comment.
In the past, Yandex has accused Google in the past of making it difficult to use rival search engines, including Yahoo and Yandex, with Google's Chrome browser.
According to LiveInternet, Yandex's share of the Russian search market averaged 60.4 per cent in the second quarter.
In July, Yandex reaffirmed guidance for 2012 revenue growth of 40-45 per cent in rouble terms, after 60 per cent in 2011.
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