The decision to offer AMD processors gives HP the opportunity to diversify its consumer notebook line, offering an alternative to its mainstay Intel processors. Last year at this time, for example, HP offered a Pavilion notebook based on AMD's K6-2+ mobile chip.
AMD has found success mainly in consumer PCs but has worked to broaden its market in recent years. With its processors for servers and workstations, the company hopes to bust into the corporate market and a growing share of the laptop segment.
The new HP notebook will feature a 1GHz Athlon 4 processor along with high-end features such as a 15-inch screen, 256MB of RAM, and a combination DVD-ROM/CD-rewritable drive.
HP representatives declined to comment on unannounced products, but sources say the official announcement will come at next week's TechX NY (formerly PC Expo) trade show in New York.
The HP notebook is AMD's second Athlon notebook placement in North America. Compaq Computer is selling the Athlon 4-based Presario 1200 for $1,599.
Also at the show, AMD rivals Intel and Transmeta each are expected to announce new mobile chips. Intel is expected to take the wraps off its "Tualatin" Pentium III chips, set to ship next month, and Transmeta will launch its new Crusoe TM 5800 chip.