With the new iPhone event just a few weeks away, retailers have started to heavily discount current models of the handset in an effort to clear inventory and maintain sales during the lull.

Best Buy and Target are currently knocking $50 off all models of the iPhone 4 and 4S, starting as low as $49.99. And Sprint has just sweetened the deal with a $100 AER gift card…

9to5Mac is reporting that Sprint is now offering a free $100 American express Reward Card along with the purchase of a 16GB iPhone 4S. Add this on top of the $50 discount, and you could essentially score an iPhone 4S for $50.

Even better, it appears that Apple is matching the giveaway, offering users $100 in Apple Store credit along with the purchase of a Sprint 4S. BusinessInsider says it has confirmed this with a New York-based location.

This is easily the best deal we’ve ever seen on the 4S, and a steal for folks who aren’t interested in the upcoming model. Just remember, the offer comes with a two-year carrier contract and appears to be in-store only.

What do you think, deal or no deal?