An anonymous source who claims to work for Google sent Android and Me an image of the alleged Nexus 5 device and insists the prototype is real. This is an unverified source Android and Me is working with, which means you should take the rumor with at least a sea full of salt.
Image Source: Android and Me
Assuming it's real, however, the Nexus 5 will sport a 5.2-inch OLED display with a Full HD 1080p (1920x1080) resolution, Qualcomm Snapdragon 800 processor clocked at 2.3GHz, and 3GB of LPDDR3 RAM. It will also feature 16GB/32GB/64GB internal storage options, 2.1MP front camera, 16MP rear camera with 4K video recording at 30FPS, front-mounted stereo speakers, 4G LTE support, and a 3,300mAh battery.
There are a couple of reasons to be skeptical here. The first one is the heavy-handed spec sheet compared to the Nexus 4, which went in a more modest direction to keep the contract-free price down to an affordable level. And the second reason to be skeptical is that LG is having a heck of a time keeping up with demand for the aforementioned Nexus 4, so could you imagine what kind of response a Google-branded handset like the above would receive?
Don't despair -- even if the above is fake, it's only a short matter of time before that kind of smartphone spec sheet becomes commonplace.