The Linux-based software will allow users to run desktop apps on their handsets, allowing them to double for PCs when docked to monitors. The code will initially be released as a file which can be installed on Samsung's Galaxy Nexus phone, replacing Android.
Some analysts question whether consumers really want the power of a fully fledged computer on their phone. Even so, Ubuntu's founder, Mark Shuttleworth, said he was in talks with manufacturers for devices to be sold with the system pre-installed within the year.
While he acknowledged the innovation would likely be limited to "enthusiasts and hobbyists" at first, he said it signalled a wider shift on the horizon.
"It's quite incredible that we're at this point when the power of the phone is crossing over that with baseline processing power of basic laptops," Mr Shuttleworth told the BBC. "We're taking advantage of that so for the first time in history you have the full consumer PC platform available on a phone."
Source: BBC News