It's been a while since we've posted any Apple Mac rumours so we thought it was about time we posted another. This time it's the rumour surfacing on the web that Apple is working on producing a video iPod.

The source of the rumour is that Apple has allegedly inked a deal with a UK chip designer Alphamosaic to power a ‘future multimedia mobile device'.

The Cambridge based company specialises in powerful multimedia chips to provide the key component for an upcoming device according to tech news site SiliconValleyWatcher.

The website claims the chip codenamed VC02 is described as “the world's most advanced mobile multimedia processor”. The owner of Alphamosaic - Broadcom, states on its website “the VC02 can display video on 3.5 inch color LCDs and capture 8 megapixel images, making it ideal for watching TV, making videos or taking studio-quality photos on a cellphone.”

With Sony announcing its plans to offer a video download service for the PSP, and Microsoft's Media Center gaining momentum, it would make sense that Apple would be starting to look at a ‘video on the go' device.

We will keep you posted.