NYTimes is reporting that Google has launched a new version of Google Search for Apple iPhone with voice recognition technology and location based results. This updated version is expected to be made available as soon as Friday through Apple’s iPhone App Store.

Users of the free application can place the phone to their ear and ask any question by pressing a button on their phone to activate speech recognition. The recorded sound is converted to a digital file and sent to Google’s servers, which try to determine the words spoken and pass them along to the Google search engine. The search results can include local information, taking advantage of iPhone features that let it determine its location.

The service can be used to look up contacts in the iPhone’s address book, get restaurant recommendations from other Google users or even driving directions to stores.

Update: The Google Mobile App for iPhone with Voice Search and My Location is released officially.