The California, US-based iPhone-maker Apple has reached an agreement with UK mobile operator Orange, for the sale of iPhone in the UK. As a result of the deal, the Apple iPhone will now be only offered exclusively on one network in the US and Germany.

The Apple-Orange agreement spells the culmination of the 2007-signed exclusivity deal between Apple and UK network operator O2. Though Orange has refrained from specifying either the release dates of the iPhone 3G and 3GS or the pricing details, it has said that the popular smartphone will hit the markets 'later this year'.

Talking about the deal with Apple, Orange said in a brief statement: "Orange, which has the largest 3G network covering more people in the UK than any other operator, will sell iPhone in all Orange direct channels including Orange shops, the Orange webshop and Orange telesales channels, as well as selected high street partners."

Recently, Orange had also mentioned its intentions to merge its UK network with Deutsche Telekom's T-Mobile, thereby creating a business with 28.4 million customers. If the merger materializes, Orange will overtake Telefonica's O2 to become UK's foremost provider.

Meanwhile, O2 will continue to sell the iPhone in Britain; and, in addition it will also sell iPhone's rival - the Palm Pre, which will be exclusively available to O2 from 16 October.