Kevin Rose founder of Digg.com has revealed some information he has heard from sources regarding the Apple TV update. Rumours of the Apple TV’s first major hardware revamp first appeared in May this year.

Engadget has since reiterated the initial rumour stating that the future Apple TV will have the innards of an iPhone 4, will have an App Store and will cost just $99. Engadget also dubiously claims that the Apple TV will be renamed to iTV.

Now Digg founder Kevin Rose is weighing in with what he has heard. In a blog post Rose states that Apple will be launching a “revamped/renamed version of their ‘Apple TV’ set-top box, called ‘iTV’.”

iTV as the rumours insist it is called claim that it will run iOS and Rose expects a marketplace for TV apps. TV channels will also come in the form of apps with on demand options. Rose also discloses close integration with MobileMe and that the iPad could be used as the preferred input device.

Rose expects the device to arrive in September, presumably during Apple’s annual iPod event usually held in mid-September.

As for the name, it’s not uncommon for Apple to license trademarks from other companies or enter an agreement to use them but iTV is the name of a major TV network in the UK. ITV in the UK hold a very wide trademark covering everything and anything Apple would want to do with the renamed Apple TV. ITV are also reportedly “furious” with the idea that Apple would bring a product to market with such a name, although the source of this comment isn’t exactly solid.

Suspiciously there is also a refused trademark application for iTV filed by a non-descript Austrian company.