Nokia has reportedly stop developing its first smartphone using the MeeGo operating system, according to industry sources.

According to a leaked memo published online by technology website Engadget, Nokia's new head Stephen Elop suggests the phone giant is in crisis. He describes the company as standing on a "burning platform" surrounded by innovative competitors who are grabbing its market share.

"The first iPhone shipped in 2007, and we still don't have a product that is close to their experience," chief executive Mr Elop wrote in the note that was distributed to the Finnish company's staff.

"We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the end of 2011, we might have only one MeeGo product in the market."

MeeGo was created a year ago by the merger of Nokia and Intel's Linux-based platforms Maemo and Moblin.

Nokia is expected to publicly address its future strategy at a media event this Friday.