The new model is viewed internally as a bigger brother to the successful Yeti. Skoda is not keen on squeezing an extra pair of seats into its existing SUV to create a Yeti+2, as Nissan has done with the Qashqai.
It is not yet clear what model from the Volkswagen Group the new car would be based on, but Skodas board member for sales and marketing, Jurgen Stackmann, appeared to rule out a rival for Volvos XC90, saying it was too large.
This could imply an SUV based on the underpinnings of the Superb.
Of the idea of a seven-seat SUV, Stackmann said: There is space for that, it would make perfect sense for us.
A new model is still some way off, though, and nothing is expected to be revealed for at least two years.