The rumor comes from anonymous sources who spoke with the Dutch website Apple Weetjes, which does not have an extensive track record with respect to Apple rumors. It said the new version the photo editing software will be "largely inspired" by the newly released iPhoto for iOS.
The new iPhoto '12 will reportedly allow users to create a photo album and share it via iCloud. This would replace the MobileMe gallery function currently found in iPhoto.
In addition, iPhoto '12 is also rumored to allow users to easily transfer pictures from iOS devices with iPhoto installed. In this way, users could quickly edit and share photos between their Mac and iOS devices.
The report also said that photo retouching in iPhoto '12 for Mac will be "inspired by iOS." It said the new version will be available on OS X 10.7 Lion or OS X 10.8 Mountain Lion, but will not run on OS X 10.6 Snow Leopard.
iPhoto for iOS was launched on the App Store in March, and was introduced alongside the third-generation iPad. It was dubbed by Apple as a "reinvention" of the preexisting iPhoto for Mac.
Apple revealed last month that it had sold more than a million copies of iPhoto for iOS in less than 10 days of availability. It is available for $4.99 on the iOS App Store, and is compatible with both the iPhone and iPad.
On the Mac, iPhoto was last updated in October of 2010 along with iMovie and GarageBand in the iLife '11 software suite. All three applications come free with every new Mac, while existing users can purchase the latest versions from the Mac App Store for $14.99 each.