The Times Online is reporting that O2 has won exclusive rights to the iPhone in the UK.

O2 has beaten its rivals to win the exclusive UK rights to offer Apple’s iPhone. The tie-up, the mobile phone industry’s most sought-after deal in years, marks a major coup for the 18 million-customer group. The final contract is expected to be signed imminently.

According to the report the iPhone will retail at £300 in a market where most high-end phones are free.

The article also suggests that Orange is the front-runner in France.

Also FTD.de (via Mac Rumors) is reporting that the iPhone will land in only the UK, Germany and France this coming Autumn. The iPhone will NOT feature 3G according to this particular source.

[Update - 5 July 2007 - 08.00 BST] - One reader, Mark Sutton has previously contacted World of Apple regarding a conversation they had with O2 customer support. According to Mark Sutton O2 customer services ensured him that the iPhone would come in the fourth quarter of this year and that the message had been received by internal memo.

World of APple has attempted to get more details from O2 customer services with no success.