Nokia now plans to release the Nokia N87 with a 12MP camera and multi-touch capabilities according to release documents for the smartphone which have appeared on YouTube in the last few months. The documents show that he Nokia N87 will combine the N8x range’s multimedia capabilities with the new Symbian3 OS supporting multi-touch gestures.

According to the Youtube document, the N87 will have a 12-megapixel autofocus camera with Carl Zeiss optics, Xenon flash and night-view mode, along with a 600MHz ARM Cortex 8 processor and 3.7-inch AMOLED capacitive touchscreen.

It becomes clear that the Nokia N87 will be the Finnish manufacturer’s first direct iPhone competitor. The phone is expected to be in shops by third quarter of 2010.

The release document for the Nokia N87 also states that the touch keypad size has been increased and the style has been changed, basically meaning that we should see a software keypad style that is actually meant to be used for fingers.

The release document also mentions the option of choosing 16GB or 32GB Nand Flash internal memory, at the expense of a memory slot. The phone will also offer 256MB RAM, which can be expanded with a virtual memory thanks to Symbian3.

The phone will also sport new HD surround sound speakers on the left and right. There’s also ambience detection and lighting that makes the phone, for instance, automatically ring and vibrate louder in a crowded place as opposed to in a car.

The device will cost between $600 and $700 before subsidies, which is in line with similar competing products before subsidies.