An O2 spokesman said: "The news is currently still just rumours, so O2 can make no further comment."
O2, owned by Spanish telecoms giant Telefónica, is still thought to be in discussions with Apple over the contract, so the deal may still come to fruition.
Apple is now shifting its attention to Europe, where it hopes to roll out the iPhone in time for Christmas.
Analysts originally thought that Apple would pick a single pan-European partner, with Vodafone named as the favourite. However, Apple seems to have decided to partner with different operators in different markets.
German press reports said yesterday that T-Mobile would distribute the iPhone in its home market, launching on 1 November with a price tag of around €450 without a contract.
The iPhone does not support 3G but uses Edge, a wireless data technology currently only supported by Orange in the UK.
However, O2 and other providers are expected to roll out the technology over the course of the year.
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