Following Sagem and Sony Ericsson's announcement last month that the French company would be making the Swedish phone giants entry-level handsets, the company today announced that it will be making Vodafone branded handsets.

The move, which means Sagem is likely to slowly disappear from the highstreet will see the company produce a Vodafone-only branded mobile handset for sale across Vodafone markets.

Vodafone is hoping the move will allow it to use its internationally recognised brand to help sell "competitively" priced handsets which will only carry the Vodafone name similar to how Mark & Spencer operates with many of its goods.

This handset is scheduled for release by June 2007.