The popular Apple phone could be called the iPhone 5 or the iPhone 4S but observers agree that it will feature a faster processor - the same A5 processor that powers Apple's iPad 2 - and more pixels for it's camera.
The new handset will also run iOS 5, the latest version of Apple's operating system for iPhone, iPad and iPod touch. Apple unveiled iOS 5 at its Worldwide Developers Conference in San Francisco in June but rumour has it the new phone will add a voice control system.
The event, which Apple's invite headlined 'Let's talk iPhone, is expected to be led by Tim Cook, Apple's new chief executive. Mr Cook has recently taken over the role from Steve Jobs, who resigned for health reasons in August.
This will be Mr Cook's first event as Apple CEO and his performance will be scrutinised by observers who will be eager to discover whether he can match the charisma of Mr Jobs.
The iPhone was first launched in 2007, the iPhone is now Apple's most successful product. More than 20 million iPhones were sold in the second quarter of this year, despite the approaching update. Apple has typically launched its new iPhone in June but this year's release was delayed for reasons that have not been explained.
Apple is already facing stiff competition from Google's Android Phones and the market seems to be shrinking as more mobile phones are getting a better chunk from it. Maintaining apples iPhone market share would probably be the most challenging task ahead for the new CEO.Sign up here with your email