UPDATE: Microsoft's Major Nelson has tweeted that Xbox Germany was mistaken. "We will not be expanding the friends list as a part of the next Xbox LIVE Update," he insists.

ORIGINAL STORY:The impending Xbox 360 dashboard update will increase the friend limit from 100 to 1000, so say Xbox Germany.

According to Joystiq, the news popped up on Xbox Germany's Facebook feed.

A crude Google translation reads, "A lot of long-term change was desired by Xbox Live users the limit of 100 friends. With the update you can now up to 1,000 friends of your friends list. How many friends do you have? Not enough? Then you looking for new friends on the Finder tab!"

Looks like the German outpost jumped the gun though, as the announcement has since been removed. We've asked Microsoft HQ to confirm or deny.

A bump in the number of friends allowed on your Xbox 360 has been rumoured for some time. Microsoft's Aaron Greenberg announced it was in the pipeline way back in January 2009.

The new Xbox 360 dashboard goes live on 4th November, boasting new Kinect and Zune functionality and much more besides.