The latest scuttlebutt on Apple’s new iPhone or iPhone 5 is suggesting that the next-gen smartphone will feature a larger screen size and Retina Display.

This is contrary to early reports that the iPhone 5 would not likely be expanding its screen size from the conventional 3.5 inches used on previous versions. However, it’s been a while since those reports were published, and the chances of a larger display seem to be better than ever before.

Nevertheless, when we say “larger” we mean only 4 inches – an increase over the previous size, but not as big as the displays on phones such as the Samsung Galaxy Nexus, or even the Samsung Galaxy S2. In order to achieve this, Apple would need to alter its aspect ratio from 3:2 to 9:5.

Moreover, Apple’s possible move to increase the iPhone’s screen size may be more of a necessity than anything else. If rumors that the iPhone 5 would support 4G LTE and include a bigger battery are accurate, then increasing the phone’s actual size would be imperative. The new iPad increased its battery size to accommodate Retina Display and 4G LTE, so it’s likely the iPhone 5 would follow suit.

Chances are we’ll have to wait till a month or so before the iPhone 5’s tentative release date before we find out more concrete information on the handset’s display. Most sources are figuring the iPhone 5 will be out either in June or October 2012, though October sounds more realistic at this point.