The carmaker's local arm will field two Jazz cars in the series, designed to the championionship's two-wheel-drive G2 specification.
Power for the Jazz ARC cars will be provided by Mugen-prepared 2.0 litre four-cylinder engines, delivering 183kW at 9000rpm and 193Nm of torque.
In its regular road-going guise, the Australian-delivered Jazz offers 88kW in 1.5 litre form, and 73kW with the entry-level 1.3 litre engine.
The first of the two cars will be driven by Eli Evans and Glen Weston, with the second pairing to be announced early in 2012.
“The Honda Civic Type R that Eli Evans and Glen Weston campaigned over the past two years has become a crowd favourite at rallies around the country, because of how exciting it looks on the stages and the great sound it makes," ARC boss Scott Pedder said.
“The renderings of the new Honda Jazz G2 are very exciting and give a strong indication of how the new generation of two-wheel drive rally cars will look. I am sure they will fire the imagination of rally enthusiasts,” Pedder said.
The six-round 2012 ARC series will kick off in March with a 'Rally Showcase' at Calder Park in Victoria.