Volkswagen has fast-tracked plans to boost the image and overall sales of its entry-level Up hatchback through the addition of a new range-topping GTI model, according to officials at its engineering headquarters in Braunschweig, Germany.

The secret new GTI model has been conceived to provide Volkswagen with a sporty rival to the popular Abarth 500 (now 595). It will use an uprated version of the company’s newly introduced 1.0-litre, three-cylinder turbocharged petrol engine in a brand-building exercise under the motto ‘affordable performance’.

In the facelifted Up, the new EA211 engine delivers 90hp. However, a more heavily tuned version is already in use in the Golf Bluemotion TSI, where it delivers 115hp – sufficient reserves, suggest VW sources, to provide the sub-1,000kg Up with the performance to match today’s powerful hot hatchbacks.

The new engine will be offered with the choice of either a six-speed manual or seven-speed dual-clutch automatic gearbox. Prototypes of the Up GTI are said to be capable of achieving a top speed of more than 200kph and a 0-100kpph time of around 8.0sec when fitted with the DSG.

The recently revised Abarth 595 has a larger, turbocharged 1.4-litre four-cylinder engine that delivers 145hp in entry-level form and comes with either a standard five-speed manual or robotised automatic.

The range-topping Up is also in line to receive a heavily retuned MacPherson strut (front) and torsion beam (rear) suspension with its own spring and damper rates, as well as a lowered ride height.

Our sister publication, Autocar UK has already driven a prototype of the more powerful Up fitted with an early 105hp version of the turbocharged 1.0-litre triple. The move to give it 115hp is significant because it matches the power output of the naturally aspirated 1.8-litre four-cylinder engine used by the first- generation Golf GTI, originally revealed at the 1975 Frankfurt motor show.

Together with the upgraded engine and revised chassis tune, the hatchback is also due to receive a host of GTI-specific exterior styling revisions to reflect its added performance.

The Up GTI is expected to be sold in three-door and five-door body styles. VW insiders have said that styling proposals give it different bumpers, 16-inch wheels with 205/40-profile tyres, wider sills and twin chrome tailpipes.

Inside, VW plans to provide the Up GTI with a number of traditional touches, including individual instrument graphics, a golf ball-style gearlever knob and tartan cloth upholstery.