Reports reach us that O2’s exclusive contract to handle the iPhone in the UK will come to an end just before Christmas, with Orange allowed to sell the Apple handset on its network from October.

According to the mobile fans at Omio, they’ve had “word from a very, very credible source on the inside that the iPhone 3G will be available on Orange in the UK, possibly as soon as October.”

Weighing up the evidence for a deal between Apple and Orange, we should point out that the network already has a deal in place to sell the iPhone in France, Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland and Africa.

Add to that reports that Apple is unhappy with the UK’s reputation as the place to be for iPhone jailbreaking, and it’s understandable the firm wants to increase choice, and protect its revenues.

However, with O2 struggling to launch the iPhone 3G without a hitch in the UK, and news that it’s pulling best-selling handsets from shelves in an effort to push customers towards the iPhone, we’ve a nagging feeling there could be some credence to this.

What do you think? Would Orange be your network of choice for a freely available iPhone 3G? Give us a shout in the comments section below.

TBC | £TBC | Apple (via Omio)