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Australian tech news site Smarthouse talked to an unnamed executive at Taiwanese cellphone company BenQ recently, who says Apple representatives have been working on manufacturing deals in Taiwan for an iPod phone over the past few months:

"An iPod phone is definitely coming. BenQ will not be making it as we are in competition with Apple however several of our suppliers have been approached to manufacture parts. Among manufacturers in Taiwan it is common knowledge. The issue for many is the availabilty of parts if the phone takes off" said the BenQ executive.

We've been talking about iPod phones for years now, but it seems like they might actually genuinely be in our near future. If you're looking to buy a swanky new phone in the next year or so, cross your fingers and start saving your change.

iPod Phone Confirmed [Smarthouse]