Over the last week there has been a plethora of rumours floating between tech websites about the discovery of the new Apple iPhone 4 in an American bar.

The story goes that Apple engineer Gray Powell left the iPhone on a bar stool after celebrating his 27th birthday with friends at a German pub in California. The new model iPhone looked identical to an iPhone 3GS, but once opened it revealed a shinier and smaller device than its predecessor, and it sported a new front-facing camera.

The person who found the new iPhone 4 allegedly sold it for $5,000 to gizmodo.com, a gadget and technology blog. For one week the gizmodo.com bloggers disassembled, examined and photographed the new Apple iPhone model.

On their website, Gizmodo sparked curiosity and technologically-tuned imaginations of Apple fans as its bloggers documented everything, gave a full list of specs and extensively reviewed their prized new Apple iPhone 4.

Now, the rumours are raging like wild fires across the internet with Gizmodo and Engadget both naming different bars where the iPhone was found. Moreover, there are also reports of a police investigation into the matter, and a recent raid on the house of Gizmodo editor Jason Chen for allegations of theft.

Regardless of whom is charged and if the iPhone rumour is indeed real, one thing's for certain: Apple couldn't get better publicity for the eagerly awaited launch of their new iPhone 4.