Microsoft’s Zune Phone running Windows Mobile 7 remains a rumour but it’s gaining force with a Spanish language blog reporting that it’s set to appear this month in Barcelona at the Mobile World Congress conference.

MuyComputer reports that NVIDIA has confirmed it will be joining Microsoft to announce the Zune Phone in Barcelona.

It claims that Microsoft is making use of NVIDIA’s Tegra chip in the Zune Phone. That makes sense as it used the same chip in the Zune HD.

We’ve heard previously that the latest version of the Zune software hides references to the Zune Phone while Windows Mobile 7 is reportedly set for launch at Mobile World Congress.

We’ll be at Mobile World Congress, so if Microsoft does launch a Zune Phone, we’ll get our hands on it quicker than you can say Steve Ballmer’s dancing again.

Due TBA | £TBA | Microsoft (via Mashable)

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