By AppleInsider Staff

Published: 11:00 AM EST

Deutsche Telekom's mobile communications unit T-Mobile has clinched an exclusive deal with Apple to sell the coveted iPhone in Germany, according to Reuters.

Citing an industry source, the media outlet reports that the agreement -- to be announced next week -- will see the Apple handset sold through Deutsche Telekom's retail outlets in Germany at an initial price of 399 euros ($554).

As part of the deal, Deutsche Telekom has reportedly agreed to share voice and data revenues generated by the phones with Apple. The deal also means that Vodafone, once expected to be the frontrunner for an exclusive, pan-European agreement with Apple, has missed out.

Apple has scheduled a London news conference for next Tuesday but has declined to give details.

An Apple spokesman in Germany has said only that the company would announce which telecoms operators had won the sales deal by the end of September.