Apple and Motorola will announce the iTunes phone next week, during a special event that will take place on September the 7th at the Moscone Center, SF. The company started sending invitations to the press earlier this week.

The new device will be carried by Cingular Wireless, the leading mobile telecom company in the United States. Though earlier reports suggested that the E790 Motorola phone will be the first device to work with iTunes, no new information came to confirm that this is true.

It appears that first information about the imminent announcement of the iTunes phone was leaked yesterday. The New York Times confirmed (requires free subscription) today the reports that the new product is coming next week.

Sources believe that Apple will also announce a new line of iPod minis during the event. Recent reports suggested that the iPod minis will get color screens and increased storage.

UPDATE: The Wallstreet Journal (free trial subscription required) confirms that the iTunes phone will be announced. It is also claimed that the iPod mini line will be replaced with flash based iPods.

UPDATE 2: TimesOnline reports that O2 will carry the iTunes phone in the UK.