Palm has announced a new Smartphone at CES in Las Vegas spreading rumours that the company will phase out its own operating system in favour of Microsoft's mobile OS.

However a spokesman for the company told Pocket-lint that although "You will see more Microsoft Palm devices, we will not be dropping the Palm OS anytime soon".

The rumours come following the launch of the company's latest device, the Treo 700w, that features Microsoft Windows Mobile 5 Operating System and follows on from the Treo 650.

The phone, which will be exclusive to the US mobile operator Verizon for the first 6 months, supports the companies Wireless' BroadbandAccess service on its EV-DO network.

"The deal with Verizon is for the first 6 months, however you can expect to see it on Cingular and other operators in the US after that", Pocket-lint was told.

The device that is virtually identical to the Treo 650 apart from the OS, will hopefully make it to the UK later in the year. However on body on the Palm Booth at the show had any information as to what operators it would be available on.
In the past, the Treo has been exclusive to Orange.

We will keep you posted.