The Japanese-Swedish joint venture said the X10 will run Google's Android software and feature a large 4.0-inch touch screen display, 8.1-megapixel camera and a Qualcomm 1GHz Snapdragon processor.
It will also offer Google applications such as Google Calendar, Gmail, YouTube, Google Maps Navigation for turn-by-turn directions and Android Market to download applications.
In recent years, the company has seen its market share shrink from a lack of high-end smartphones.
Meanwhile, Google has made significant inroads with its Android platform as handset makers like Motorola look for ways to compete in the smartphone industry. Of the top vendors, only Nokia has not announced plans to use its software.
Sony Ericsson said the Xperia X10 will launch in select markets in early 2010.