According to website Reg Hardware, PortalPlayer said it will integrate its PP5022 audio chip family with UK company CSR's UniFi Wi-Fi and Bluetooth controller. Reg Hardware says the companies will demonstrate a reference platform based on the combined technology next week at the 3GSM show in Barcelona.

Incorporating Blutooth and WiFi into an iPod would enable users to use Bluetooth headsets, browse music on a host computer, and even download new music from iTunes at hotspots.

Last week, a supposed invite to an Apple event in late February circulated on the internet, and some have speculated that if the event occurs it may be as a springboard to wireless-capable iPods.

However, this may be premature, as Reg Hardware reports PortalPlayer and CSR's technology wouldn't be available until the second half of the year.