The next VW Beetle will use the same platform as the Jetta, unveiled at the Detroit motor show.
The Beetle, which will go on sale next year, is not expected to be a radical departure from the current model.
"The design will change, slightly but there won't be anything too surprising," said a VW source. "It will have more interior space and slightly different proportions.
"The main aim is to make the design more masculine, to appeal to more buyers."
Just over one million current VW Beetles have been sold in the past 10 years.