The seventh-generation iPod nano will likely add a camera to its rear side and ditch the built-in clip. The device will, however, retain its same small form factor and multitouch screen.

The new information comes from an alleged picture of the next iPod nano. The camera will reportedly be a low-resolution 1.3 megapixel lens, according to the Taiwanese website, which credits a source named Ray from California.

The reason for killing the iPod nano clip is simple: it would cover the camera lens on the purported device. Ray did not mention, however, whether Apple would attempt to solve the loss of the clip.

This is not the first indication to suggest that Apple could add a camera to its multitouch iPod nano. Early last month, the news leaked, noting that the current model's size and display would remain unchanged. The source was the same Taiwanese blog that leaked the above picture.

While it's hard to believe a rumor when there is only one main source, but it is worth noting that this particular Taiwanese Apple blog has correctly leaked each of the previous six generations of the iPod nano. For this reason, we think this news will indeed come to pass.

The larger fifth-generation iPod nano, released in September 2009, did have a camera. The sixth-generation iPod nano, released in September 2010, lost the camera in favor of a smaller form factor with a multitouch screen. Many will welcome the camera back, though others will in turn complain about the loss of the clip.

Other details for the new iPod nano or not yet known. The last three generations have come in 8GB and 16GB flavors. We think it's time for a bump in storage.