The Alfa Romeo Mito GTA hot hatch will be launched at the Geneva motor show this March.
The Mini JCW rival will be powered by a 240bhp 1.8-litre turbocharged petrol engine and feature Alfa Romeo's Q2 technology, which mimics a mechanical limited-slip differential.
The car is expected to be substantially lighter than the standard vehicle, with carbonfibre and aluminium components being used to save weight and enhance performance.
The Alfa Mito GTA will have 31bhp more than the hottest Mini.
Prices have yet to be announced, but it is expected to be around 2000 less than the Mini JCW - giving it a price of around 19,000.