Microsoft is apparently in the process of working with Forza 3 developer Turn 10 studios to repackage Forza 3 for release. According to our sources, this new version of Forza 3 will be sold as Forza 3 Ultimate Collection.

While Microsoft has yet to officially confirm what the Forza 3 Ultimate Collection will offer, it is likely (according to our sources) that it will feature the Forza 3 game, of course, plus a combination of the content from the Forza 3 Limited Edition as well as a good amount of the already released downloadable content. It is unknown if Microsoft and Turn 10 plan to offer this additional content package as downloadable codes or on a third disc that will be included in the package.

The decision to release the Forza 3 Ultimate Collection appears to be in part to counter the release by Sony of Gran Turismo 5. By pushing the Forza 3 Ultimate Collection out during the same release window, Microsoft will be able to remind Xbox 360 gamers that they, too, have an ultimate driving title for sale. We suspect as well that the Forza 3 Ultimate Collection will be attractively priced and include a vast amount of additional content that will make it a significant value. It is expected that the Forza 3 Ultimate Collection should be announced in the next several weeks and will be released in November.