Despite a number of recent reports, Japanese firm Softbank are denying they have partnered with Vodafone to develop a mobile handset that is compatible with Apple's iTunes.

Japan's SoftBank has formally distanced itself from claims it's working with Apple to develop a mobile phone based on the iPod. In a terse statement, the company dismissed the allegations, reported last week, as unfounded guesswork.

The claim that the two firms are co-operating was made by Japanese newspaper the Nihon Keizai Shimbun. It alleged Apple CEO Steve Jobs met his opposite number at SoftBank, Masayoshi Son, and they agreed to market the product jointly.

The Rumours of the device's development have been fuelled by a number of high profile commentators, including the Wall Street Journal's Walt Mossberg.