Intel is hoping Apple will select its chips for inclusion in the third version of the iPhone, according to online reports.

Intel is known to be developing a new processor for mobile devices called Moorestown, the second-generation processor after the recently announced Atom chip.

The x86 chip was discussed in session at CeBIT, with Intel showing a slide during its presentation which clearly shows an iPhone as the icon for the smartphone category Intel wants to see the processor used in.

Apple iPhone review

That Intel chose an iPhone as an illustration for its target market has quickly been seized on as evidence a deal between the two firms is a fait accompli.

Making such a move could potentially allow Apple to integrate the code used in its handheld devices with that of its remaining products and services, AppleInsider notes.

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