Saab is expected to unveil a small family concept car at the Geneva motor show in March.
Dubbed a 9-1, but it may not take that name, the car is expected to be a rival for the Audi A3, BMW 1 Series and VW Golf.
The concept car is built around the Delta platform, which will also form the basis of the new Vauxhall Astra, and signals part of Saab's on-going commitment to expand its product range into new sectors.
If it gets the production go-ahead, it will go on sale in 2010.
Saab will also show the 9-4 X at the Geneva show, its first 4x4.