The event is set for September 1 at the Yerba Buena Center for The Arts, in San Francisco. It's the same venue Apple used to introduce the iPad earlier this year. Apple CEO Steve Jobs is expected to lead the event.
Though Apple, infamous for its secrecy, is mum on details about the new product, analysts believe the new iPod Touch will feature dual cameras—one rear facing and one that's forward facing. A front-facing camera would allow users to use Apple's FaceTime video conferencing app on the iPod Touch.
The new device also could include more storage capacity. The largest available currently for iPod Touch is 64GB, on the model that sells for $399.
Although the iPod dominates the MP3 music player market, sales have tapered off of late.
Unit sales slid 7.7% year-over-year, to 9.41 million, in the second quarter, according to Apple. The company is hoping the introduction of a new model will reinvigorate the franchise, which has taken a backseat to buzzworthy products like the iPad and iPhone 4.
Some analysts also speculate that Apple will also introduce a beefed up television console.
The company is rumored to be in talks with major networks with an eye to offering TV episode rentals through a service that would be called iTV. Apple's current settop service, Apple TV, has largely failed to catch on with consumers.
Apple shares were up .79%, to $244.80, in premarket trading Thursday.