Putting speculation to rest that Namco Networks has been considering a touch-enabled version of Tekken, we can confirm today that the Iron Fist Tournament is indeed coming to iPhone and iPod touch.

A source close to Namco speaking to us on the condition of anonymity tells us the game is far along in development and looking good.

To paraphrase, "the game is being finished up and it plays rather nicely."

It's not clear whether this iPhone version has been built from scratch or is a touch-enabled port of Tekken 6 as developed for PSP. The latter seems most likely, which is wise given how well-crafted the PSP version is.

There's no confirmation of multiplayer, although we expect head-to-head bouts to be of the local variety.

With competitor Capcom having just announced Street Fighter IV for iPhone, Namco's move with Tekken is a logical one.

Both games will be shown at next week's Game Developers Conference, so expect more news soon.

UPDATE: Namco has been in touch to clarify that Tekken won't be shown during GDC.

"We are NOT showing anything at GDC with regards to Tekken. We will be previewing new stuff, but it will NOT involve the Tekken brand whatsoever." Emphasis is theirs.

The company didn't confirm or deny the game's existence, just that it has no plans to show Tekken next week.