UPDATE 1-Apple talks with media giants to rent shows-sources

* Apple in talks with News Corp, CBS, Disney - sources

* Stream TV shows for 99 cents- sources

* New version of Touch expected - report

NEW YORK, Aug 24 (Reuters) - Apple Inc (AAPL.O) is in talks with News Corp (NWSA.O) and Walt Disney (DIS.N), and several other media conglomerates to allow consumers to rent TV shows through iTunes, said sources familiar with the matter on Tuesday.

The sources said the Apple discussions, first reported by Bloomberg, aimed at allowing viewers to rent programming from the networks for 48 hours at 99 cents each.

Representatives from Apple, Walt Disney, News Corp and CBS declined to comment.

Also Apple is set to unveil a new version of the iPod Touch with a higher resolution screen, the report said. The Touch is a music and video-playing multimedia device. (Reporting by Jennifer Saba; editing by Bernard Orr and Carol Bishopric)