The latest iteration to the Windows Phone 8.1 update is reportedly ready and will be released soon.

Microsoft is expected to release two more updates to Windows Phone 8.1, which are internally known as General Distribution Releases (GDRs), GDR 1 and GDR 2, also known as Update 1 and Update 2.

There is not much information available about the changes and improvements these GDRs would bring. But one of these two updates might include '3D Touch', that powers the upcoming Goldfinger handset expected in Q1 2015. Besides, the GDRs are expected to address bug issues and bring other improvements.

Microsoft is yet to release the Windows Phone 8.1 update to existing Windows Phone 8 devices, which is expected in the coming weeks.

Neowin now reports that Windows Phone 8.1 GDR 1 or Update 1, which was reported to be in the dogfooding process recently, is almost ready. Microsoft is expected to release the RTM (Release to Manufacturing) version to its hardware manufacturing partners and carrier partners for testing this week.

Following the testing by the partners, the Windows Phone 8.1 Update 1 will be pushed out to the developer programme. The public version of the update will be released once the carrier partners complete testing the software.

This matches with the previous rumour which revealed that the GDR1 would be released sometime mid-year, that is around June/July, whereas the GDR2 would arrive in November/December.

The latest revelation further suggests that Update 1, although not a major release like Windows Phone 8.1, is still expected to bring native folder support which will enable users to create folders of tiles by dropping a tile on top of another. Currently, folders are only available via an app. The native folder support is said to be more fluid and transparent.