Two unnamed sources are reported to have risked the wrath of Jobs by confirming the facts. The CPU will be bumped up to the same A5 chip that's used in the iPad 2. The camera sensor will grow from 5 megapixels to 8 megapixels.
The report squares perfectly with the rest of the rumours we've been hearing about the upcoming iPhone 5, so they ring true for us, although we won't know for sure until Apple unveils the phone.
We've crunched the numbers and based on our calculations, that momentous occasion should take place on 7 September.
We also expect the iPhone 5 to be the first phone to sport iOS 5, the update to Apple's software that it announced in lieu of a new phone this month.
iOS 5 supports new camera features, including faster startup, pinch to zoom, and the ability to use the volume up button to fire off the shutter. New photo-editing features will include fixing red eye, cropping and rotating. Combined with an 8-megapixel snapper, these should make the iPhone 5 an even more craveable camera phone.
You can read our entire brain dump of iPhone 5 knowledge in our iPhone 5 complete guide.