Speculation that a new digital radio service could be introduced to Apple iPods has been sent soaring today despite an official statement denying that such a technological breakthrough was imminent.

Reports have suggested in recent months that satellite radio company Sirius was in talks with Apple chiefs about the possible new service but the firm’s CEO has renounced these rumours.

“I have spoken to Steve Jobs,” Mel Karmazin, Sirius Satellite Radio CEO, admitted on Wednesday, before adding that the “current thinking” at Apple is that “they don’t need to put a satellite radio in their box.”

Speaking to the Financial Times however, Mr Karmazin has since stated: “Whether you put satellite radio in a cell phone, video game or MP3 player this could be an enhancement.”

A recent survey by JP Morgan highlighted the market for such an item does exist, predicting subscriber numbers could reach 35 million by 2010.