Don’t you just love rumors that won’t die? This time, The Wall Street Journal is reporting they have a source who has actually seen a prototype mini iPhone, code name N97. Supposedly, this phone would be half the size of a regular iPhone and half the price to compete with other mass-market priced smartphones. But is there any truth to this rumor?

Whoops! After doing such a great job of keeping their lips sealed about today’s iPhone announcement, an executive at Verizon let a big secret slip out in an interview today. Francis Shammo, chief financial officer of Verizon Communications Inc. told Bloomberg that Verizon will be selling a CDMA-enabled iPad in the future.

“Apple, Inc. is making a version of its iPhone that Verizon Wireless will sell early next year,” reads the Wall Street Journal quite confidently. While we certainly have seen this Verizon iPhone rumor before, it sounds quite nice coming from the Wall Street Journal. With the end of an exclusive deal with AT&T coming up, as well as increased competition from Google’s Android platform on all the carriers, this would undoubtedly be a good move for Apple.

Since users first experienced the shortcomings of AT&T, there has always been talk of Apple bringing the iPhone to a secondary carrier in the United States. In recent weeks, signs have begun to point to a version of the iPhone soon being available on Verizon. Now, John Gruber (who else, right?) has word that the CDMA iPhone is nearing the production stage. This version of the iPhone—apparently internally codenamed N92—may not be a sure thing, Gruber says, but recent evidence seems to indicate it is.

Verizon Wireless has already announced they are expecting to see Apple’s iPhone on their 4G network next year. Now, the rumor is that Verizon and Apple are already working together in testing the new iPhone (probably a prototype) on Verizon’s 4G Long Term Evolution network. It’s being reported that Verizon Wireless’ CEO, Lowell McAdam, has made several visits to Apple’s headquarters in Cupertino, and that Apple is indeed testing a CDMA iPhone on Verizon’s 4G LTE network.