Engadget reports today that according to a “well connected source” AT&T and Apple are working on adding IPTV capabilities to the Apple TV. IPTV (Internet Protocol Television) is a system where a digital television service is delivered using the Internet Protocol over a network infrastructure, which may include delivery by a broadband connection.

Even though no launch window has been determined, Engadget believes that AT&T’s close relationship as of late is indication enough for this service to appear rather sooner than later. No further details are provided.

Customers who previously complained about the lack of a PVR in the Apple TV will obviously welcome this news. However, it remains to be seen if Apple is truly willing to share its iTunes delivery service with another company.

Are AT&T and Apple the next Google and Apple? What’s next? AT&T CEO Randall L. Stephenson will join Apple’s Board of Directors? We’ll see…