MacUser UK has reported that Apple will not be releasing a flat panel iMac for MACWORLD New York, and will instead speed bump the current design and introduce new colors. MacMinute broke this story, with fewer details, on Tuesday. MacUser UK is also reporting that Apple will be offering rebates on the new iMacs to stir demand. From the MacUser UK story:

Sources confirmed new iMacs announced next week will remain in their current form factor, and there will be three new models, with G3 processors in the range of 650-750MHz. Two of the configurations will be available immediately. Two new colours will also be announced, replacing the Blue Dalmatian and Flower Power designs announced earlier this year. It is also expected iMacs will now come standard with 128MB of memory to accommodate the minimum requirements for OS X, which is now shipping on all Mac models.

The mail-in rebates - which will be available for all Mac models and not just iMacs - will range from $50 to $80 on inkjet printers – theoretically making some models free – to a $100 rebate on digital still and video cameras, PDAs and MP3 players. They will be announced on Wednesday, and will last until 14 October. It is not yet known if or when the rebates will be made available in the UK and Europe.

There are more details on the nature of the rebates in the full MacUser UK story.