The next generation of Skoda Fabia will make its international debut at the Paris motor show in September 2014 before going on sale the following year.
The new car will be aimed at a younger audience and will be 'much sportier' than the current model, according to Skoda CEO Dr Winfried Vahland.
It will be lower and wider than the current generation, with the styling heavily influenced by the Skoda Fabia S2000 rally car.
'I said to my designers, go and build something like that,' said Vahland.
However, Skoda recognises that it needs to not alienate its existing customer base. The new car will come with 'class-leading visibility' for example.
It will also come with a new, more advanced, infotainment system. This will not come as standard, again to not alienate older buyers, but will be affordable enough at around £500 to appeal to younger drivers.
While the current car is based on the underpinnings of the previous-generation Volkswagen Polo, the next Fabia will have the latest Polo's platform.
It is likely to come with a selection of 1.0-litre, turbo and non-turbo three-cylinder petrol engines, plus a diesel unit.