MacRumors.com

Best Buy is expected to announce that they will begin selling the iPhone 3G next month, according to AppleInsider.

The announcement should come as early as Wednesday and represents the first time a 3rd party U.S. retailer will be selling Apple's iPhone. The iPhone will reportedly be sold in 970 Best Buy stores in addition to 16 Best Buy Mobile specialty outlets starting on September 7th.

Rumors of Best Buy's interest in the iPhone began over a year ago. More recently, Boy Genius Report had heard that both Best Buy and Radio Shack had been working on iPhone distribution. There has been no further word on any distribution deals with Radio Shack, however.

Update: BestBuy has officially announced that they will be selling the iPhone 3G starting on September 7th.

"We had a lot of work to do, obviously, to get in a position where Apple and AT&T would feel good about Best Buy Mobile carrying it, and that's what we've done in the last 18 months," said Shawn Score, president of Best Buy Mobile.