US carrier Verizon is reportedly looking to cut off its deal with Palm to offer the Pre smartphone, in a move which could also harm Palm internationally.

A report on financial news site TheStreet.com, citing internal sources, claims that Verizon had been in talks to carry the Pre in the US from January 2010 but has now decided not to follow through on the deal.

Sprint is currently the only carrier in the US to offer the Pre. O2 is the sole carrier in the UK, and any withdrawal could affect confidence at other carriers before the launch.

If the report is true it would provide an unwelcome twwist to what has thus far been a largely successful roll-out for the Pre.

Unveiled at the 2009 CES conference, the handset was viewed by many as a new chapter for Palm and a legitimate challenger to the likes of the iPhone and the BlackBerry.

When Sprint first began support for the device in June, the Pre logged huge sales figures and was the fastest selling device in Sprint's history.

Though the Pre has initially sold well, Palm has yet to fully see the financial benefits, and some analysts are predicting that sales of the Pre could soon take a hit.