Motorola has today refuted reports that it demonstrated its hotly-anticipated iTunes mobile phone yesterday.

Appearing in Cannes at industry event, 3GSM, Motorola demonstrated several new devices, including the E106. The latter product was widely described as the new iTunes-compatible mobile phone.

This is not the case, a Motorola spokeswoman told Macworld: "The E1060 is not the new iTunes phone. This product was used only as a demo to showcase the iTunes application."

iTunes users may not have too long to wait, though. "We will be announcing the first iTunes phone in the near future," the source said.

The source declined to reveal any more details regarding the new product: "For competitive reasons, we are holding information (including specifications and design) very closely until the appropriate time and venue for product launch," she said.

At present, what is known about the company's iTunes plans include: the handset includes a fully functional Java-based version of iTunes music, so users can sync it with their iTunes library and carry a limited number of songs.

Motorola's mobile devices group vice president Amer Husaini said: "We're committed to have iTunes as the default music client, but we'll also continue to support other music players such as RealPlayer."