NEW YORK--Google is hosting a press event here Thursday where it's expected to take the wraps off plans to turn smartphones into mobile wallets.

The new mobile payment system will work on select Android-based phones sold on Sprint Nextel's network, according to a Bloomberg report that cited unidentified sources. Google reportedly plans to introduce the service initially in New York, San Francisco, Los Angeles, Chicago, and Washington, D.C.

The service is supposed to use near-field communications (NFC), very short-range wireless communications technology that allows users to pay for things in retail locations by holding a device equipped with a special chip close to a specialized reader at a retail check out.

Google isn't commenting on the rumor of the NFC announcement, nor has the company explained what it will be announcing at Thursday's press conference.

The event is scheduled to be held at Google's New York offices. And it will kick off at 12 p.m. ET. CNET will live-blog the news using the Cover It Live tool. So come back about 20 minutes before the press conference starts to get in on the pre-event chatter and follow the news here as it happens.