Apple has filed a patent application for an 'accessory transceiver', which could allow the new iPod Touch to make phone calls and access data networks.
The new patent would effectively turn the device into a smartphone, Patently Apple reports.
The latest iPod Touch can already make use of the latest video conferencing technology from Apple, FaceTime, enabling the owners to make calls over the internet.
"Anyone who claimed that the iPod has reached the end of its life cycle was completely wrong," said an industry expert to the Economic Times.
The new iPod Touch 4G comes with two cameras, one behind and one front facing, allowing users to use both during a call.
The HD camera also allows users to create video and edit it on the device itself with the help of the iMovie app.
The MP3 device, which has been marketed by the company as a hand held gaming console, costs $229 for the 8GB version while 32GB and 64GB variants are also available. The gadget supports retina display, Game Centre for iOS, and high dynamic range images.