Claimed to be the smallest and lightest interchangeable lens Lumix G system camera, the GF3 will be released in mid-July, featuring a 12.1-megapixel Live MOS sensor.

The GF3 has been designed for entry-level photographers looking to upgrade from compact cameras to interchangeable lens systems - as a result it lacks some of the features introduced in previous models - the GF1 and GF2. For example, the camera's hotshoe has been replaced by a pop-up flash.

However, the GF3 also borrows some of Panasonic's G3 features such as the new pinpoint auto-focus mode. The camera also features the Venus Engine VII HD, a burst shoot rate of 4fps at full resolution and a full-HD movie recording mode at 25fps.

The GF3 has a sensitivity range of ISO160 to ISO6400 and an auto-focus speed of 0.18s, claims Panasonic.

While the camera will appeal to entry-level users, Panasonic tells Photoradar that it plans to release another GF model aimed at advanced photographers. According to the photography website, Panasonic’s director of DSC business unit Ichiro Kitao "said that although he was unable to confirm a date for such a camera, he said that Panasonic plans to split the GF series into two lines and release a GF camera aimed at experienced photographers."

The GF3 will retail from £499 with a 14-42mm OIS lens. Visit panasonic.co.uk.