Nokia said on Sunday that the leaked concept images of its first Windows Phone 7 device were genuine.

Nokia CEO Stephen Elop revealed at Mobile World Congress that Nokia would like to produce a Windows Phone 7 device into the market by the end of 2011. Devices are not currently ready to be shown publicly but Nokia confirmed leaked images of a concept device were genuine and supplied an additional photo.

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.

Update: Nokia has now released the full image, see below.