A new version of the iPod Nano will be introduced within the next two to three weeks, according to Digg founder and Apple watcher Kevin Rose.

In a blog posting, Rose cites anonymous sources in a personal blog posting which details the reported plans from Apple. He claims that the upcoming rollout will include a new version of iTunes and a redesigned iPod nano.

The new nano would reportedly be thinner and longer than its current incarnation, allowing for a wider screen. Additionally, the new nano would also feature a rounded, cylindrical casing.

While Rose's report makes no mention of wireless networking, a past filing from Apple could point to the addition of WiFi hardware on the device.

The rumored redesign for the nano is similar to a design described in an Apple patent application from 2006. That filing proposed a device that was encased in a ceramic 'tube' casing that was capable of allowing the transmission of Wi-Fi signals.

In addition to the new nano, Rose reported that the company would roll out an updated version of iTunes and new iPod touch firmware. Rose also predicted a cut in prices on the entire iPod line to prevent the players from cannibalizing sales of the $199 iPhone.

Rose's report should, however, be taken with a grain of salt. The Digg founder has a track record for Apple predictions that has been spotty at times.

In 2007, Rose cited anonymous sources in claiming that the original iPhone would not be limited to one carrier and would sport multiple batteries. Last March, he also reported that the iPhone 3G would feature video chat.