Vodafone, having just announced a deal with Foursquare in the UK is continuing on its quest to embrace developers and get some decent dedicated apps on its handsets.

With that in mind, the company has announced a 1m euro prize fund available to European developers to see who can come up with the best app.

According to the mobile phone operator, the Vodafone App Star competition is open to any developer across the world and closes on 31 March 2010.

Developers can choose to submit their app into one of eight markets (UK, Germany, Greece, Ireland, Italy, Netherlands, Portugal or Spain) and the best entry in each market will receive 25,000 euros. The second and third best entries will receive 15,000 euros and 10,000 euros. The winning entries from each market will then progress to a second round of the competition, where the top eight apps will be put to the public vote. 

The app with the highest number of public votes will win an additional 75,000 euros, with the second place app receiving 25,000 euros.

It's the second time the company has launched the initiative with Smartrunner, a sports-tracking and geo-tracking app that helps you stay in shape using your mobile as the best app first time around.

So do you have an app idea?