Over the weekend TechCrunch had a story that 2 senior Facebook developers (Joe Hewitt and Matthew Papakipos) were tasked with secretly developing a Facebook branded phone, with deep Facebook integration.

This morning Facebook released a statement: “The story, which originated in Techcrunch, is not accurate. Facebook is not building a phone.” The company said that it’s focusing on “deep integration” with existing mobile platforms, but that “building phones is just not what we do.”

Working within existing mobile phone OSs makes far more sense, the market is already heavily saturated with iOS, Android, WebOS and Windows Phone 7 – releasing a new platform solely within the Facebook environment might appeal to die hard Facebook fans but that target group is spread globally and the agreements a Facebook phone would have to have with multiple carriers across multiple countries made this an unconvincing idea.