Audi insiders have reportedly confirmed a green light for production of a new compact MPV model, destined to join the A3 small-car range.
But, according to Britain's Autocar magazine, rather than tacking an extra name onto the A3 badge - a la the A3 Sportback - the company is considering the name 'V4'.
The new model is believed to be known internally as the 'Elevated Space Vehicle' or 'Spacer'. (Audi A3 Spacer? That could work... - Ed.)
It is also not the first time that Audi has considered a taller small car, with the high-roofed Roadjet concept appearing at the 2006 Detroit Auto Show. Nothing came of the project, however.
The so-called V4 or Spacer would share the A3's MQB platform, likely stretched to accommodate up to seven passengers.
Audi is believed to have already built a concept of the new model for a public preview, but an unveiling is yet to be locked in. Reports suggest Audi is considering a Frankfurt debut next month.
BMW and Mercedes will maintain their headstart for a while longer though, with an Audi-badged small MPV unlikely to hit showrooms until 2016 at the earliest.