Computer giants Apple and Microsoft are racing to develop a wireless digital music player in time for Christmas, it emerged today.

The new gadget would enable songs to be downloaded without having to plug the equipment into a personal computer.

Apple, the market leader which currently sells around 3million iPods - its brand of portable music player - every month, is said to be creating a wireless version also boasting a 'funky' aluminium design.

Current iPod owners have to sit in front of a computer to download music onto the gadget. But with the wireless version, they would be able to download new songs anywhere and at any time - as long as there is a wireless network in the area.

Microsoft, which wants to topple Apple's massive market share, is also said to be developing its first digital music player which will also be wireless.

As well as playing songs, insiders say it will double as a portable games console.