Chinese Internet, said Shanghai's Jiangnan Shipyard was preparing to start work on the carrier.
When completed, the carrier and another under construction in Dalian will give the PLA Navy two fully functioning, battle-ready aircraft carriers.
The recently completed Liaoning, the refitted former Soviet carrier Varyag, is classed as a training platform, not a full combat vessel, by the navy, since it went into service in September 2012.
Counter to many expectations, the new carrier about to be built at the Jiangnan Shipyard will use conventional, not nuclear power.
Military experts said China would not attempt a nuclear-powered carrier until a range of issues were resolved, such as the reliability of nuclear-powered engines, crew training and establishing a reliable home port for carrier maintenance.
According to the report, Chinese shipbuilding industry sources said the design for the second carrier had not been completed.
The report countered earlier predictions by Western analysts that the new carrier would be nuclear-powered, like the planned Soviet Ulyanovsk-class carrier.
The Ulyanovsk was slated to be Moscow's first nuclear-powered supercarrier, with an 85,000-tonne displacement. But like the Varyag, the ship was never completed and the hull was scrapped in 1992.