The iPhone Dev Team has made the jailbreakme iPhone hack available for users online, BBC News has reported.
The new Jailbreakme 2.0, which allows iPhone users to run and install applications that have not been approved by the Apple App Store, can now be installed directly from the handset's own Safari web browser.
Previous versions required a computer or Mac to be connected to the device for installation.
Apple had declared jailbreaking an iPhone illegal, claiming that the concept was not in-line with American copyright laws, but a recent change in US law by the US Copyright Office has now made the act legal.
The ruling states: “The user is not engaging in any commercial exploitation of the firmware, at least not when the jailbreaking is done for the user's own private use of the device."
Despite the ruling, Apple still insists that jailbreaking an iPhone, iPod or iPad will invalidate its warranty.
Jailbreakme can run on all iOS 4-based iPhones and iPod Touches and can be downloaded from www.jailbreakme.com.