Blog sites are claiming that Apple is about to unleash the much-rumoured 16GB version of the iPhone in the UK today.

Apparently due to go on sale in all UK O2 stores nationwide from 1.30pm, the price tag for the new model is said to be £329.

It has been seen as only a matter of time before Apple upped the memory capacity of the iPhone, especially as the similarly built iPod touch is available as a 16GB model.

The 16GB version would double the memory capacity of the current iPhone which costs £269.

In America, the rumours put the price for the larger capacity handset at $599 which was the price point the device originally launched at in June last year.

It is a Tuesday, and the US Apple store is down - but the UK online shop is currently up and running.

It's unclear at this stage if this this will materialise into more than just wild rumour (an O2 contact told us to "ask Apple"), but we will keep you informed.

>> Reviewed - iPhone 1.1.3
>> Link - Apple
>> Via - Engadget
>> And - TR
>> UPDATE! - Apple launches 16GB iPhone, 32GB iPod touch