Apple is reportedly on the verge of releasing an FM radio application for the iPhone and iPod touch. Citing anonymous sources, rumor site claims the app will be allowed to operate in the background and should offer similar functionality to that of the new iPod nano models, which includes the ability to pause live FM transmissions and fast-forward when you resume playing.

Apparently the launch would have come sooner but Apple is still working on integrating the new feature with its mobile iTunes Store, so that users are just a few taps away from purchasing any song they are listening to on the radio – provided the station supports song tagging.

iPhones and iPod touch devices have been able to receive FM radio signals for some time now, but as points out this wouldn't be the first time Apple awoke sleeping hardware functionality from its devices several months after their introduction. The company waited 9 months before enabling Bluetooth functionality in its second generation iPod touch and is still holding back on things like 802.11n wireless and the ability to broadcast FM signals, even though its hardware currently support it.