The Apple/Motorola iTunes phone will initially be available from mobile operator O2, The Times claims this morning.
Contrary to previous reports, this report also claims the phone will allow users to buy songs "while on the move".
Previous reports have claimed the phone will be unable to buy songs over mobile networks, but will be able to hold and play songs held in an iTunes music library which are transferred from a PC.
The Times adds that the device is expected on the UK market in time for Christmas. It's likely to command a premium price, the report adds.
An O2 spokesman declined to confirm or deny the plans, but stressed the importance of music to his company's plans.
September 7 calling
Apple has announced a major iPod-related event on September 7.
Invitations sent to media organizations in the US and UK declared: "1,000 songs in your pocket changed everything. Here we go again."
It's anticipated Apple will finally reveal the facts about its new product that day.