According to newspaper reports over the weekend, the catalogue will sell everything from TVs to furniture, rivalling high street chains such as Argos and Woolworths.
A Tesco spokeswoman said today: 'We have made no secret of the fact we want to do more with non-food online, but we have no specific plans.'
If it goes ahead, the venture is expected to be rolled out in larger stores by next spring, as part of Tesco chief executive Sir Terry Leahy's attempt to double non-food sales.
The UK's biggest supermarket, which already nets£1 of every£8 spent in the UK, began its push into the non-food sector by opening a trial store at Denton, Manchester earlier this month.
Investec retail analyst Matthew McEachran said this morning that: 'Tesco has the ingredients to be a competitive threat to GUS', the owner of Argos if the launch goes ahead.