The Audi engine already produces 250kW/450Nm in the TT RS and RS 3 models, but the AMG 2.0 litre - the Mercedes performance arm’s first turbo four - produces the same torque and 10kW more with a half-litre smaller displacement.
While chasing outputs and performance is good for bragging rights, the first hurdle Audi must overcome is the engine’s compliance with 2014’s Euro VI emissions regulations.
Speaking with CarSales, Audi’s quattro division development boss Stephan Reil said that Euro VI is the key reason behind the engine’s further development.
“We have to work on its combustion processes because the step to Euro VI is quite a big one,” Reil said.
“Then we have to work on the catalysts and from there it’s just geometry. We have to have the air coming into the cylinder in rolling waves to produce as little pollution as possible.”
The turbo five-pot Audi engine is far from an old design however, debuting in the TT RS in 2009, and also powering the international RS 3 model from 2010.
It has also garnered international praise, winning the 2.0-2.5 litre category in 2010 and 2011 International Engine of the Year awards.
Confirming the company's long-term plans for the performance engine, Reil added that the mill has "a big future" in the Audi range.
Audi has previously hinted at future output gains with the 300kW/480Nm quoted figures for the 2010 Paris quattro concept version of the same engine.
With plans of a production version of the quattro concept now shelved, the up-specced 2.5 litre will most likely find its way into RS versions of the latest A3 hatch, next generation TT, and possibly also the upcoming A3 sedan.