Both companies are keen to get into the European market, The Guardian reported.

Apple has reportedly been talking to Vodafone about launching its iPhone across Europe before the end of the year, while search engine giant Google is understood to be talking to groups such as O2 owner Telefonica about producing its gPhone.

The iPhone and gPhone offer a range of innovative features for users, including intelligent keyboards with predictive text, desktop-class e-mails, advanced Internet search facilities and Voice over Internet Protocol (VoIP) applications. The gPhone also includes a two-way video-conferencing facility.