Intel has moved quickly to quash rumours that a new iPhone is on the way built around its soon-to-be released Atom chip - a rumour started by statements by one of its own execs.

The chip-maker sent a statement to ZDNet Germany, which was one of the sites to run with the original iPhone/Newton story, which has now been published.

In it, Intel states categorically that the words of general manager Hannes Schwaderer at an Intel event in the BMW World in Munich were taken out of context.

Scores of sites have picked up on the story writing that Intel's German bigwig had stated, in no uncertain terms, that Intel and Apple were working together on a new iPhone.

Intel says that Schwaderer wasn't specifically implying that an iPhone-type device is in development with the Intel Atom chip but that it may appear in a future MID ... possibly.

According to CNET news, an Intel employee in the US was really quite vocal about the original story describing it with a volley of terms we can't print when the site contacted them.

One rumour down, but heck - there's plenty more out there.