The whispers are true, or so it seems. According to Stuff, O2 is getting set to one-up T-Mobile's price cutting affair in Germany by hacking a full £100 from the 8GB iPhone in the UK (bringing it down to £169). Better still, the discount will apply regardless of which contract selection you make, whereas T-Mobile forced users to sign the dotted line on a pricey Complete XL plan. Unfortunately, the lower sticker only applies to the 8GB version -- the 16GB model will remain £329 -- but anyone who sprung for one of the former iterations within the last month will receive an "Ultimate Price Promise" £100 refund voucher. Before you dash out to cash in, it should be noted that the deal is set to expire come June -- and we certainly don't have to remind you what that could mean.

Update: O2 just made it official.

[Via Mobile Today, thanks to everyone who sent this in]

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O2 slashing 100 from 8GB iPhone in UK