SyFy Network’s DVICE gadget blog claims to have received insider information from a source who has handed prototypes of the iPhone that will be headed to Verizon’s network. Top among the rumors is that the Verizon iPhone will not be an iPhone 4.

According to the source, at the insist of Verizon, the new iPhone will feature an internal antenna. Which of course should resolve any “death grip” issues that may or may not still exist on the iPhone 4. Over the past few weeks, we have seen The Toronto Star, Verdens Gang and The Daily Telegraph all question the iPhone 4 reception issue and even suggesting the issue may be more related to AT&T’s network than anything.

The new iPhone is also said to include a more rugged exterior, but I doubt that it would include Liquidmetal’s “amorphous” metal alloys which Apple recently acquired exclusive rights to use in electronics.

A faster processor is also said to be in store for the new device. The rumor suggest that it could be a 1.2 GHz chip, however little is known about the current Apple A4 processor in the iPhone 4, so it may very well be the same chip, simply underclocked at the moment.

Last, the new iPhone is said to include a larger screen somewhere in the neighborhood of 3.7 inches, which puts it the same size as the Droid 2. The source did not say if it was a retina display, though with as much praise as the iPhone 4′s retina display has received, I cannot see any reason that the Verizon iPhone would not include it. Additionally, I would think that someone that handled a “prototypes” would be able to tell if the device’s screen was a retina display or not. It is not hard to tell the difference, which tends to make me believe that the so-called source is full of it.

One of the more interesting things about the iPhone 4 rumor did not come from the DVICE article, but rather a comment in reply to the article by Rich. He suggest Apple use the name iPhone V when it hits Verizon. That may be the most likely of all the rumors to happen. Apple loves little things like that. Remember the iPhone 3G? iPhone V could very well be the fifth generation device which hits the Verizon network.Though at the same time, I do not see Apple doing this simply because the device would be bound for other CDMA (or LTE) networks at the same time.

Fact or Fiction? You decide. [DVICE]