Palm is to collaborate with Vodafone and Microsoft to create a new smart phone aimed at European customers.

The Treo phone, which will operate on Vodafone's 3G network and run Windows Mobile 5.0, will be aimed at enterprise customers who will be able to receive push e-mail on the phone.

Palm said the Treo would initially be offered to Vodafone customers in several countries including the UK, Germany, Spain, Italy and the Netherlands, before the end of the year.

In early July, Palm said that it would stop shipping the Treo 650 to Europe because the device doesn't comply with new EU regulations limiting the acceptable amount of certain hazardous substances in electronic products. Palm said at the time that it would introduce a new smart phone in Europe later in the year.

Sales of Palm devices in Europe lag behind those made by RIM. and those based on the Symbian operating system. Palm recently said it opened an engineering facility in Dublin as part of an effort to more aggressively target the European market.