Effectively a Jetta CC, the new model would enter beneath the current CC - once known as the Passat CC - to counter the appeal of the more prestigious Mercedes offering.
Whispers of a sleek new sub-CC offering stretch as far back as 2009, but with the new Audi A3 family now confirmed to get a sedan variant in the near future, a new Jetta CC version could be around the corner.
The international boom in small car sales, along with a push to re-craft its image with younger buyers, moved Mercedes-Benz to develop the CLA.
While a response from the Audi brand will present a price and prestige rival for the CLA, a Volkswagen-badged offering and a lower price point will have its own appeal with buyers not as well-heeled.
Now, according to Britain's Auto Express magazine, the small new Volkswagen four-door coupe has been approved and will arrive sometime in 2015.
The report adds that the smaller CC - either to be named Golf CC or Jetta CC - will focus on a sports feel, offering engine options to suit.
If the report is accurate, expect the more powerful engines in the Golf range to feature, along with a GTI or GTI-equivalent variant.