LinuxInsider reports on recent comments from Sirius Satellite Radio's Chief Executive Mel Karmazin about the possibility of Satellite Radio in MP3 players including the iPod.
Essentially, Sirius is interested in such hybrid device but that profit sharing details would be an issue, and that no deal with Apple has been struck.
Overall, this is not new information. Rumors of and iPod-Satellite Radio first appeared in December 2004.
Sirius's CEO already reported that they had been in talks with Apple/Steve Jobs back in February... but that the current feeling is that "they don't need to put a satellite radio in their box [iPod]".