APPLE is preparing to bring its combined iPod and mobile phone to Britain in the next few weeks in conjunction with mobile operator O2, The Times has learnt.

The iPod mobile, manufactured with Motorola, will allow owners to buy music while on the move, enhancing the power of the iconic device.

Apple is expected to unveil the new technology in the United States in partnership with Cingular Wireless next week. A British launch is expected shortly after, with the new devices available in time for the Christmas shopping season.

A spokesman for the British mobile phone operator declined to comment on the company’s relationship with Apple, saying only: “Music plays an important part of our overall portfolio.” But it is understood that confirmation of the partnership could come as soon as today.

O2 will have a period of exclusivity on the latest version of the new iPod.

The American launch will take place in San Francisco next Monday but Apple has been coy on details.

No pricing details are available but the expectation is that the device will be sold at a premium to other mobiles. The price of iPods range between £69 and £299, depending on the capacity of the device.

It is not clear how the mobile iTunes service will be priced and some of O2’s rivals have indicated that they do not want to relinquish control over music download services to Apple. Users of iTunes pay 79p a song, while Vodafone, which runs its own mobile music service, charges £1.49.

Apple has been working on the device with Motorola, the world’s second-largest phone maker, for more than a year. Initally progress was dogged by technical difficulties, allowing other mobile phone makers to introduce their own devices.

But the iPod remains the most popular portable music device and is likely to become popular as a mobile phone.