The Global Times quoted Richard Yu Chengdong, head of Huawei's consumer business as saying: "Our homegrown OS is likely to be launched this fall, or no later than spring 2020.
"We're willing to continue using Google and Microsoft [software], but we have no other choice [than to develop our own system]."
Huawei has been hit hard by the US imposing a ban on the company that forces it, and 68 of its affiliates, to seek permission in order to use any American products.
On Tuesday, the US Commerce Department said the ban would be held in abeyance for 90 days to enable existing users to update their devices.
Yu said the operating system would be compatible with Android apps.
Some Chinese media have said the new operating system would be called HongMeng OS and that it was already being tested.
Huawei founder Ren Zhengfei told Chinese media on Tuesday: "It's not a difficult task to come up with a new OS, but it's difficult to build up an ecosystem for that."
And he added: "To build a new ecosystem is a big thing, we should take it step by step."
Last year, there were reports that Huawei had been working on its own operating systems since the US Congress published an investigation into the company in 2012, accusing it of spying.