The company has not responded to CNBC's request for comment, but according to TechCrunch, the company is planning to show off the new product, which will allow users to share short video via Instagram. The publication cited a source close to the matter.
The move wouldn't be surprising, considering Facebook has taken cues from Twitter, which acquired the video sharing app Vine in January.
(Read More: Six Things You Didn't Know About Twitter's Vine App )
Just last Wednesday, the social network also announced that it was rolling out a clickable hashtag function. Twitter, Instagram, Tumblr and Pinterest already have the function, which allows users to click on a topic with a hashtag in front of it and view what others are saying about the topic.
Last month, The Financial Times reported that Facebook would be rolling out video ads in July in a move to help tap the TV ad market.
(Read More: Taking After Twitter: Facebook to Add Hashtags )
_ By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.