Several reputable blogs and online news outlets are reporting on this rumor. A fourth generation iPod Touch may be in the works. Retailers say that this new iPod touch will come with many of the new features from the iPhone 4: 5 megapixel camera, facetime, HD video recording and a gyroscope.

U.K. retailer John Lewis said the information is based on “noises we’re hearing from suppliers”. Though no mention was specifically made of a forward-facing camera at the company’s presentation in London, it did say that FaceTime calling over Wi-Fi would be possible “so you can communicate with friends at zero cost.”

Speculators say the fourth generation iPod Touch could hit store shelves in September of this year.