T-Mobile today is dismissing reports that the Android-based T-Mobile G1 will not be able to handle future, highly anticipated operating system updates.

Android engineers tweeted that the T-Mobile G1, the first Android handset offered in the U.S., has limited memory that "may not be able" to support future updates. In response to the suggestion that the popular smartphone -- the G1 recently hit the 1 million sold milestone -- had a serious limitation, the T-Mobile forum lit up with posts from concerned G1 owners.

The last Android update, dubbed Cupcake, version 1.5, debuted in mid-May, and critics immediately began speculating that it ate up all of the G1's system memory, leaving no room for the upcoming, eagerly awaited "Donut" and "Éclair" upgrades being developed by the open source OS's engineers.

However, a T-Mobile spokesperson today told InternetNews.com that "we plan to continue working with Google [Android's chief backer] to introduce future software updates to the T-Mobile G1. Reports to the contrary are inaccurate."

Get the full story here at InternetNews.com.