Rumors are turning out to be true!

“Wal-Mart Stores Inc. (WMT) is expected to become the second major U.S. retailer to sell Apple Inc.’s (AAPL) iPhone.

While sources confirm a deal is in the works, it couldn’t be determined Monday exactly when the Bentonville, Ark.-based company will begin selling Apple’s smartphone. Various media reports this weekend have suggested Wal-Mart will begin selling the iPhone by the end of the month.

Ashley Hardie, a Wal-Mart spokeswoman, said Monday, “We have made no official announcement on offering the iPhone at Wal-Mart” and offered no further comment. An Apple spokesman said he had no comment on any rumors or speculation.

Wal-Mart, which has 7,391 outlets, would be the iPhone’s biggest U.S. retail stage yet for its smartphone. To date, Apple’s smartphone is sold by AT&T (T) and retailer Best Buy Inc. (BBY), which has around 1,000 stores.

Even with such a potentially broad expansion, UBS analyst Maynard Um sees Apple needing to reach more pacts with giant retailers. “To make a more material impact, Apple’s distribution would have to move beyond Wal-Mart,” Um noted.

The San Jose Mercury News reported Friday the iPhone would be in stock at San Francisco Bay-area stores by the last week of December, and possibly before Christmas, citing managers and employees at several stores.

The stores had been holding meetings with employees to tell them the details of the release, the newspaper reported.”

While Wal-Mart and Apple won’t comment, the blog “Boy Genius” who broke the story back in October, writes today:

“We just got a tip that in addition to the iPhone 3G actually making its way to Walmart, as we exclusively told you, there will be a 4GB model priced at $99 with a 2-year agreement. We’re not putting our stamp of approval behind this one just yet as the tipster isn’t listed in our BGR’s Guide to respected Ninjas handbook, but it does make you think, doesn’t it? Now, we all know Apple dropped the 4GB iPhone from its initial line-up, but that was at a $399 price-point.”

Additionally analysts agreed that Apple could sell a $99 iPhone with ease. If your in the market for an iPhone it’s worth keeping your eyes open.