This screenshot, published by several sites, appear to confirm reports that the next software update for the iPhone will allow users to grab podcasts from the mobile iTunes Store over the handset’s 3G connection, which is a revelation for many users.

A report released late last month had suggested this would be included, but the feature was said to be non-functional at the time. This screenshot reveals the interface for direct podcast downloads, and it appears to be fully functional right now.

According to the report however, Apple will initially limit downloads to podcasts 10MB in size or less. It’s unclear, however, whether the feature will be restricted to iPhones on a 3G connection or if downloads can also be performed over the EDGE network.