According to The Wall Street Journal, the new system is based on the Android platform, with Google reportedly keen to expand the software into the infotainment systems of other carmakers.
Google hopes to replicate the experience of its Android smartphone users with the new Audi system, offering access to music, navigation and apps.
Audi isn’t the first carmaker to choose a different path, however, with a separate report last year suggesting BMW was keen to go it alone with its ConnectedDrive system, but hadn’t ruled out future Apple or Android integration.
“Cars are becoming more complex, and with the computing power that is going into vehicles, you need that type of system in the car,” Audi's Filip Brabec said.
Mr Brabec said future vehicles will need more sophisticated computer operating systems, able to support apps and functions that customers want access to while driving.
In addition to the new infotainment system, Audi is expected to demonstrate new semi-autonomous technology at the show, with systems expected to feature in upcoming models over the next 4-5 years.