Apple's much-hyped iPhone gadget will be launched in the UK in November.

The eight gigabyte iPhone, which will cost £269 including VAT, has been given a release date of November 9 by the US electronics giant.

O2, the UK's largest mobile phone operator, has won the exclusive contract to sell the multi-purpose phone in the UK, Apple said.

Apple chief executive Steve Jobs made the announcement at a press conference in London on Tuesday morning.

He said: "We are coming to the UK and wanted to pick the best carrier and that is O2.

"US iPhone customer satisfaction is off the charts, and we can't wait to let UK customers get their hands on it and learn what they think of it."

Steve Jobs, Apple: "We are coming to the UK and wanted to pick the best carrier and that is O2."

Matthew Key, chief executive of O2, added: "Our strategy at O2 is to bring our customers the best products and experiences.

"The iPhone is a breakthrough that is changing the way people use their mobiles forever, and we’re thrilled to have it exclusively for O2 customers in the UK."

O2, which is owned by Spain's Telefonica, is offering three monthly tariffs - £35, £45 or £55.

Customers will have to sign up for an 18-month contract on one of the above packages.

The gadget, which went on sale in the US on June 29, will be sold in O2, Carphone Warehouse and Apple stores.

Apple's iPhone combines the features of an iPod music and video player with those of a mobile phone.

It allows users to download music, TV shows, podcasts and videos from the popular iTunes store.

The phone incorporates a large touch-screen rather than the conventional buttons used on most other mobiles.

However, the phone does have one major drawback - it runs on Edge and can not use high-speed 3G networks. Edge is much slower than 3G.

But Apple defended its decision not to cram a 3G chip into the iPhone.

According to the firm, 3G chips use too much power and would seriously reduce battery life.

California-based Apple sold its one millionth iPhone just 74 days after it went on sale in the US.