Apple is reportedly working on a newspaper subscription engine for the iPad.

The San Jose Mercury News reports, typically citing unspecified 'industry sources,' that Apple's plans should eventually provide a new source of income for publishers.

Many newspapers have been struggling with declining print circulation and advertising revenue in recent years.

In return, Apple would take a 30 per cent cut of subscriptions and and as much as 40 percent of the advertising revenue estimates a digital publishing expert quoted by the California based newspaper.

Additionally, Apple has agreed to provide an opt-in function for subscribers to allow the iPad maker to share with publishers customer information. According to industry sources, this would  include vital data that news organisations use to attract advertisers and income.

Apple iPad