According to the UK's AutoExpress, the so-called GS 300h would enter below the existing 450h flagship, swapping its big six for a four-cylinder engine.
The magazine quotes Lexus GS deputy chief engineer Koji Sato, who said that a number of low-CO2 emissions solutions are being considered, "including a small hybrid".
If the report is accurate, the new model could utilise the same 2.5 litre four-cylinder petrol engine and electric motor combo that powers the Toyota Camry Hybrid.
Reports suggest that the new model, if it exists, could debut as early as at September's Paris Motor Show.
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