Apple and AT&T have both confirmed that US customers who cannot, or simply do not want to sign into a two-year contract, will be allowed to purchase the new iPhone 3G, for $599 and $699 for the 8GB and 16GB models respectively.

For those who purchase the phone along with a 2-yr contract including mandatory data plan, the cost is only $199 and $299 respectively when the phones go on sale July 11th.

There is of course, a hitch to the new announcement. AT&T says to be able to buy the phone at all, consumers must sign up for some type of AT&T wireless subscription.

There was no word on when this new type of agreement would become available.