Apple is set to release a new iPod Touch during their annual September refresh, that’s according to a CNet note reported by Techradar.

CNet says: “fans of the iPod touch who felt left out due to last week’s launch of the iPhone 3G S, take heart: there’s a new device on the way. In the BlueTool initialisation script in the iPhone 3.0 firmware there are mentions of a new iPod touch called ‘iPod3,1.’ Given that the current generation is referred to as ‘iPod2,1′ it would seem to indicate that Apple has a new version in the works.”

This speculation will keep fans wondering, what else can Apple add without making it too much like the iPhone? Apple, clearly wants a distinction between the two products (iPhone now offers camera/video camera, and phone capabilities), but a camera or video capability could come to the iPod Touch.

This news comes after many fans did not upgrade their iPod touch software due to the $9.99 upgrade fee (iPhone users get it for free).

AdMob, a prominent data site, goes on to explain on its blog - “”Developers looking to sell applications utilizing the 3.0 features can’t be happy with Apple’s decision to charge for the upgrade as it limits their available market size for downloads.”

(via Techradar)