Speaking with Autocar, Skoda chief Winfried Vahland reportedly confirmed that the Czech carmaker has given the new project the green light.
The report also says a company insider confirmed that the new SUV would be offered as a five- or seven-seater around 4.6 metres in length.
A full clay model of the new SUV is reportedly sitting in Skoda’s design studio, with engineering work to get underway next year.
“It’s the right concept for Skoda, it works perfectly with our brand values,” Skoda technical chief Frank Welsch said.
Mr Welsch said engine options are likely to include a 2.0 litre four-cylinder petrol and diesel, a 1.6 litre diesel and a diesel-electric hybrid.
While the unnamed SUV would make an ideal addition to Skoda’s Australian line-up, the push from Volkswagen’s local arm to bring the CrossBlue here first may see the car restricted to overseas markets, depending on sales.
The new model would sit above the current Yeti SUV in Skoda’s local range, joining the Fabia, Octavia, Roomster and Superb, although Skoda is also reportedly considering the addition of another Yeti-sized SUV with ‘toned-down’ styling.
A similar report suggesting Skoda was planning a seven-seat SUV surfaced out of the US early this year.