Speaking with Edmunds, Jeep CEO Mike Manley reportedly said that while the car would initially debut in the US, he expected it do well in European markets.
"The weight of that market today is outside North America, predominately Europe," Mr Manley said.
"It is growing in China. I think when we launch our SUV here, you are going to see quite significant growth in that segment in the U.S."
It is expected that the baby Jeep offering would be available in front-wheel-drive and possibly four-wheel-drive. The report claims the new model will be around 4.2 metres in length, compared to the 4.6 metres of a regular Jeep Cherokee.
As for the full-sized Jeep Cherokee, we can expect the all-new 2014 model Cherokee SUV in Australian showrooms before the end of the year.