Apple devices come pre-installed with the less-than-spectacular YouTube app, but not in China. Thanks to the infamous Chinese censor called The Great Firewall, YouTube, along with several Western social networking sites, is still blocked in the country.

TechNode is spreading a rumor, supposedly from a trusted source, claiming that YouKu founder Victor Koo has met up with Steve Jobs to discuss the possibility of having the YouKu app pre-installed on iPhones and other Apple devices that are officially sold in China.

Youku, China’s top video streaming website, permits users to upload videos irrespective of length and has partnered with over 1,500 license holders, including television stations, distributors, and film and TV production companies in China that regularly upload media content on the site. Some Youku videos are blocked to international IP addresses because of licensing issues.

No other detail is revealed so for now, it would be best to take it with a grain of salt. However, if true, this deal could possibly boost YouKu’s position in China — similar to that of Baidu’s, given the popularity of Apple devices in China.