diff --git a/app/assets/javascripts/reports/new.js b/app/assets/javascripts/reports/new.js
index 061e2589e..d8e24e01d 100644
--- a/app/assets/javascripts/reports/new.js
+++ b/app/assets/javascripts/reports/new.js
@@ -1,4 +1,4 @@
-/* globals animateSpinner GLOBAL_CONSTANTS */
+/* globals animateSpinner GLOBAL_CONSTANTS dropdownSelector */
 
 var REPORT_CONTENT = '#report-content';
 var ADD_CONTENTS_FORM_ID = '#add-contents-form';
@@ -990,5 +990,25 @@ function reportHandsonTableConverter() {
     });
   }
 
+  function initDropdowns() {
+    dropdownSelector.init('#projectSelector', {
+      singleSelect: true,
+      closeOnSelect: true,
+      selectAppearance: 'simple',
+      onChange: function() {
+        $('.continue-button').attr('disabled', false);
+      }
+    });
+
+    dropdownSelector.init('#templateSelector', {
+      singleSelect: true,
+      closeOnSelect: true,
+      noEmptyOption: true,
+      selectAppearance: 'simple',
+      disableSearch: true
+    });
+  }
+
   initReportWizard();
+  initDropdowns();
 }());
diff --git a/app/assets/stylesheets/reports/new.scss b/app/assets/stylesheets/reports/new.scss
index be889145a..c950347c4 100644
--- a/app/assets/stylesheets/reports/new.scss
+++ b/app/assets/stylesheets/reports/new.scss
@@ -203,6 +203,34 @@
       }
     }
   }
+
+  .project-selector-container {
+    background: $color-white;
+    box-shadow: $modal-shadow;
+    margin: 2em 20%;
+    padding: 1em 2em;
+    width: 60%;
+
+    .description {
+      @include font-main;
+    }
+
+    .project-selector,
+    .template-selector {
+      display: inline-block;
+      margin-bottom: 1em;
+      width: 100%;
+
+      label {
+        @include font-small;
+      }
+    }
+
+    #projectDescription {
+      height: 110px;
+      padding: .5em;
+    }
+  }
 }
 
 @media (max-width: 960px) {
@@ -212,5 +240,10 @@
         display: none;
       }
     }
+
+    .project-selector-container {
+      margin: 2em 1em;
+      width: calc(100% - 2em);
+    }
   }
 }
diff --git a/app/assets/stylesheets/shared/dropdown_selector.scss b/app/assets/stylesheets/shared/dropdown_selector.scss
index e38f211df..8b365f7e3 100644
--- a/app/assets/stylesheets/shared/dropdown_selector.scss
+++ b/app/assets/stylesheets/shared/dropdown_selector.scss
@@ -12,7 +12,7 @@
   .input-field {
     align-items: center;
     background: $color-white;
-    border: 1px solid $color-alto;
+    border: 1px solid $color-silver-chalice;
     border-radius: 4px;
     display: flex;
     flex-wrap: wrap;
diff --git a/app/controllers/reports_controller.rb b/app/controllers/reports_controller.rb
index 4eda05a17..a91624940 100644
--- a/app/controllers/reports_controller.rb
+++ b/app/controllers/reports_controller.rb
@@ -25,7 +25,7 @@ class ReportsController < ApplicationController
 
   before_action :load_vars, only: %i(edit update)
   before_action :load_vars_nested, only: BEFORE_ACTION_METHODS
-  before_action :load_visible_projects, only: :visible_projects
+  before_action :load_visible_projects, only: :new
   before_action :load_available_repositories,
                 only: %i(new edit available_repositories)
 
@@ -49,6 +49,7 @@ class ReportsController < ApplicationController
 
   # Report grouped by modules
   def new
+    @templates = [['Scinote Template', 1]]
   end
 
   # Creating new report from the _save modal of the new page
@@ -457,7 +458,6 @@ class ReportsController < ApplicationController
   private
 
   include StringUtility
-  VisibleProject = Struct.new(:path, :name)
   AvailableRepository = Struct.new(:id, :name)
 
   def load_vars
@@ -477,13 +477,9 @@ class ReportsController < ApplicationController
 
   def load_visible_projects
     render_404 unless current_team
-    projects = Project.visible_from_user_by_name(
-      current_user, current_team, search_params[:q]
-    ).limit(Constants::SEARCH_LIMIT).select(:id, :name)
-    @visible_projects = projects.collect do |project|
-      VisibleProject.new(new_project_reports_path(project),
-                         ellipsize(project.name, 50, 40))
-    end
+    @visible_projects = Project.viewable_by_user(
+      current_user, current_team
+    ).select(:id, :name)
   end
 
   def load_available_repositories
diff --git a/app/models/project.rb b/app/models/project.rb
index 020063bb7..a386ab542 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -55,18 +55,6 @@ class Project < ApplicationRecord
 
   scope :templates, -> { where(template: true) }
 
-  def self.visible_from_user_by_name(user, team, name)
-    projects = where(team: team).distinct
-    if user.is_admin_of_team?(team)
-      projects.where('projects.archived IS FALSE AND projects.name ILIKE ?', "%#{name}%")
-    else
-      projects.joins(:user_projects)
-              .where('user_projects.user_id = ? OR projects.visibility = 1', user.id)
-              .where('projects.archived IS FALSE AND projects.name ILIKE ?',
-                     "%#{name}%")
-    end
-  end
-
   def self.search(
     user,
     include_archived,
diff --git a/app/views/reports/new.html.erb b/app/views/reports/new.html.erb
index fd0f9d5ec..a7f92c7b3 100644
--- a/app/views/reports/new.html.erb
+++ b/app/views/reports/new.html.erb
@@ -16,7 +16,7 @@
     </ul>
     <div class="tab-content">
       <div role="tabpanel" class="tab-pane active" id="new-report-step-1">
-        Step 1
+        <%= render partial: 'reports/report_wizard/project_template_selector' %>
       </div>
       <div role="tabpanel" class="tab-pane" id="new-report-step-2">
         Step 2
@@ -50,7 +50,7 @@
       <% end %>
     </div>
     <div class="next-button-container">
-      <button class="btn btn-primary continue-button">
+      <button class="btn btn-primary continue-button" disabled>
         <%= t("projects.reports.new.continue_button") %>
       </button>
       <button class="btn btn-primary generate-button">
diff --git a/app/views/reports/report_wizard/_project_template_selector.html.erb b/app/views/reports/report_wizard/_project_template_selector.html.erb
new file mode 100644
index 000000000..da5a51cdf
--- /dev/null
+++ b/app/views/reports/report_wizard/_project_template_selector.html.erb
@@ -0,0 +1,26 @@
+<div class="project-selector-container">
+  <h1><%= t('projects.reports.new.select_project_title') %></h1>
+  <p class="description">
+    <%= t('projects.reports.new.select_project_description') %>
+  </p>
+  <div class="row">
+    <div class="col-md-6">
+      <div class='project-selector'>
+        <%= label_tag :projectSelector, t('projects.reports.new.select_project') %>
+        <%= select_tag :projectSelector, options_from_collection_for_select(@visible_projects, :id, :name), data: { placeholder: t('projects.reports.new.select_project') } %>
+      </div>
+
+      <div class='template-selector'>
+        <%= label_tag :templateSelector, t('projects.reports.new.select_template') %>
+        <%= select_tag :templateSelector, options_for_select(@templates), data: { placeholder: t('projects.reports.new.select_template') } %>
+      </div>
+    </div>
+    <div class="col-md-6">
+      <div class="sci-input-container">
+        <%= label_tag :projectDescription, t('projects.reports.new.report_description') %>
+        <%= text_area_tag :projectDescription, '', placeholder: t('projects.reports.new.report_description_placeholder'), class: 'sci-input-field' %>
+      </div>
+    </div>
+  </div>
+
+</div>
diff --git a/config/locales/en.yml b/config/locales/en.yml
index e3f364c91..15aac0d10 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -530,6 +530,13 @@ en:
           step_3: "Select task contents"
         continue_button: "Continue"
         generate_button: "Start generating"
+        select_project_title: "Select project and report template"
+        select_project_description: "You are about to create a new report. Please select a project from which you would like to create a report, and a report template to define the desing of the report. Only projects with at least 1 task are displayed."
+        select_project: "Select project"
+        select_template: "Select template"
+        report_description: "Report description (optional)"
+        report_description_placeholder: "In this report you can see..."
+
 
         head_title: "%{project} | New report"
         nav_title: "Report for: "