A universal blood test to identify early-stage cancers in people with no symptoms could possibly be realized by American gene sequencing company Illumina Inc., said media reports on Monday.

Illumina said it would form a new company, called Grail, which attempts to detect cancer by using Illumina's DNA sequencing technology to scan for bits of cancer genes originating in tumors and circulating in the bloodstream.

The hope is to detect newly forming cancers, and treat them at an earlier stage to increase the chances of survival, according to Illumina.

Illumina Chief Executive Jay Flatley, who will serve as chairman of Grail, said they started this new test 18 months ago, and it is estimated to take at least an additional year of research and development to refine it.