Nokia’s first conceptual Windows Phone 7 device has been unveiled on Friday.

Gadget blog Engadget revealed images of a conceptual device that Nokia is believed to have produced. The images show that Nokia appears to be working on handset designs similar to the company’s recent N8 and C7 Symbian devices. Engadget says that the discovery of the images confirms Steve Ballmer’s assertion that both companies have “spent a lot of time on this already.”

Microsoft and Nokia both announced a strategic partnership on Friday allowing Nokia to create a range of Windows Phone 7 devices. The announcement came days after Nokia CEO Stephen Elop issued a 1,300 word internal memo to the company’s employees recently spelling. Elop admitted throughout the memo that competitors are doing better and that Nokia’s current ecosystem is a “burning platform”.

Microsoft CEO Steve Ballmer also confirmed on Friday that both companies have been working on a Nokia Windows Phone 7. Microsoft and Nokia have both reached out to chip providers and Ballmer claims the company’s will share more information “over the next weeks and months.” Nokia CEO Stephen Elop later confirmed that the company will be able to create a Windows Phone 7 quickly thanks to joint-engineering efforts.

Rumors of a Nokia Windows Phone 7 partnership were rife since Elop’s departure from Microsoft to Nokia in September, 2010. Speculation began when it was reported that Nokia was in talks with Microsoft to look at offering Windows Phone 7 devices. The talks were kick started by Nokia’s new management. Stephen Elop, ex-Microsoft employee, joined Nokia last year as the company’s CEO.

All eyes are now on Mobile World Congress. Nokia is planning to hold a press event on Sunday and it’s likely that the firm will unveil its plans for the first Nokia Windows Phone 7 device.